Zurn acquires Elkay: price, structure and what it means for plumbing buyers

Zurn Water Solutions Corporation

acquires

Elkay Manufacturing Company

Price

$1.56B (all stock)

Multiple

14.2x 2022E adj. EBITDA

After synergies

9.8x

Shares at close

~51.6M Zurn

Elkay owners

~29%

Closed

1 Jul 2022

Published 24 October 2026 · Deal announced 2022-02-14 · Acquisitions.com Deal Reports

Part of the Plumbing guide: buying, selling, valuation and who is buying.

This report is for anyone who owns, buys or plans to buy a plumbing business, and for owners of family companies thinking about a sale. Zurn's deal for Elkay is one of the largest plumbing deals of recent years with a disclosed price. By the end you will know what Zurn bought, how it paid with shares instead of cash, and what that means at a small-business size.

What did Zurn buy?

Zurn bought Elkay Manufacturing, a family company that started in sinks in 1920. Zurn's release calls Elkay "America's No. 1 selling kitchen sink company". Elkay also makes faucets, water coolers, drinking fountains and bottle filling stations for schools, hospitals and offices.

Zurn already made plumbing products for commercial buildings: water control, drainage, finish plumbing and hygiene products. Elkay added drinking water, which Zurn called a fast-growing category.

The two companies sell to the same kinds of buildings, through the same kinds of plumbing reps and contractors. That overlap is the core of the deal.

What did Zurn pay, and how?

Zurn paid in shares, not cash. Elkay's shareholders could receive up to 52.5 million Zurn shares. Based on Zurn's share price on 11 February 2022, that valued Elkay at $1.56 billion.

At closing, the closing release says Elkay's owners received about 51.6 million Zurn shares, after holdbacks and adjustments. That left them with about 29% of the combined company. Zurn's existing shareholders kept about 71%.

The price was 14.2 times Elkay's forecast 2022 adjusted EBITDA. Zurn said it fell to 9.8 times once the expected $50 million of yearly cost savings were counted. Holders of about 73% of Elkay's shares signed agreements to vote for the deal.

Evercore advised Zurn, with Morgan, Lewis & Bockius as lawyers. Citi and J.P. Morgan advised Elkay, with Mayer Brown as lawyers.

Why did Zurn want Elkay?

Zurn's Chairman and CEO, Todd A. Adams, said the deal put Zurn "well on our way to doubling the size of the business over the next couple of years". He called Elkay the "gold standard" for clean drinking water in commercial buildings.

The release lists the cost savings: about $50 million a year by 2025, half of it in year one. They were to come from buying, efficiency, cross-selling and a shared rep network.

The seller had its own reasons. Ron Katz, a senior member of Elkay's founding family, said the family wanted to improve its long-term position "by combining with another complementary brand". Elkay's owners became shareholders in a larger listed company instead of cashing out.

What does it mean for a small plumbing buyer or seller?

You are not buying a $1.56 billion manufacturer. But three parts of this deal apply to plumbing businesses with $500K to $50M in revenue.

Synergies change the multiple. Zurn quoted two numbers: 14.2 times before savings and 9.8 times after. Buyers of small plumbing shops do the same math, but they rarely pay the seller for savings the buyer will create. Know which number an offer is based on. See what adjusted EBITDA is.

Selling for shares is a real option. Elkay's family took stock, not cash. In a small deal, the same idea shows up as rollover equity: the seller keeps part of the business or the buyer's company. It can pay well if the buyer grows. It also means part of your price depends on someone else. Ask a lawyer and a CPA before you agree.

Commercial work is valued. Both companies serve schools, hospitals and offices. A plumbing contractor with steady commercial service contracts usually looks more predictable to a buyer than one that depends only on new homes.

First-time buyers do not pay in public stock. Most combine an SBA loan, a seller note and investor money. Start at /buy, or read our plumbing hub for what buyers pay.

What to watch

Watch how manufacturers sell through contractors. When a maker of fixtures grows by buying, its rep network and contractor pricing can change. Plumbing contractors who install these products should notice who now owns the brands they use.

Watch for more family-owned plumbing makers choosing stock deals. Elkay's choice let the family stay invested while handing over control. The same choice faces many small family plumbing businesses deciding between cash and a stake.