ZURN water solutions Corp., a Milwaukee based American water system solutions company, said on February 14 that it had reached an agreement with Elkay Manufacturing Co. to acquire Elkay in an all stock transaction. ZURN water solutions shares closed at $33.40 on February 14, up 12.1% from the closing price on February 11.
Aiken’s valuation is US $1.56 billion (about RMB 9.888 billion). After the transaction will be completed this summer, ZURN (NYSE: ZWS) will change the company name to ZURN Elkay water solutions. After the completion of the transaction, shareholders of ZURN water solutions will own about 71% of the shares of the merged company, while shareholders of Aiken company will own about 29% of the shares of the merged company.
Todd Adams, chairman and CEO of ZURN, said the acquisition marked an important step towards the goal of doubling the scale of ZURN in the next few years. This is by far the company’s biggest move since ZURN water solutions withdrew from its brother company Rexnord to become independent.
Founded in 1920, Aiken company has always been a family business and the largest stainless steel sink company in the United States. Its products have been expanded to include sinks, faucets, water coolers, drinking fountains, residential and commercial kitchens and bathroom products. Aiken’s brands include Elkay, Dayton and Halsey Taylor. The company has factories in the United States, China and Mexico.
Aiken (China) was established in 2005 with a registered capital of 110 million yuan. Its production base is in Zhuhai, Guangdong, and has branches in Beijing, Shanghai, Shenzhen and other places.
Adams said that the merger of the two companies will provide a set of innovative specific water solutions to provide water safety, water quality and water-saving services for key markets such as education and health care. The combined company will continue to trade on the New York Stock Exchange under the stock code ZWS and will be headquartered in Milwaukee. The company will also maintain business in Aiken’s Chicago area.