ZWS - Why Zurn Water Solutions Stock Popped Today
Shares of plumbing equipment company Zurn Water Solutions (NYSE: ZWS) closed 12% higher on Monday after announcing that it will merge with (i.e., acquire) privately held sink manufacturer Elkay Manufacturing .
Zurn said it will pay Elkay shareholders with 52.5 million shares of Zurn, worth $1.56 billion at closing, or about 14.2 times 2022 adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ). Elkay shareholders will hand in their shares in exchange for the Zurn shares, with the result that post-merger, Zurn shareholders will control 71% of the combined company and Elkay shareholders 29%.
The merger is expected to close sometime in the third quarter of 2022.
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Why Zurn Water Solutions Stock Popped Today