MILWAUKEE, WI — Zurn Elkay Water Solutions has signed an agreement to acquire Intellihot Inc., expanding its portfolio with commercial tankless water heating systems designed for healthcare, education, hospitality and other institutional and commercial applications.

The acquisition adds gas and electric tankless water heaters that deliver high energy efficiency and lower operating costs compared to conventional storage-tank systems. Intellihot is expected to generate approximately $37 million in net sales during 2026, and the transaction is anticipated to close early in the third quarter.

Acquisition Expands Commercial Water Heating Portfolio

For plumbing contractors and specifying engineers, the acquisition signals Zurn Elkay's continued investment in commercial building systems that support water efficiency, energy savings and evolving building performance requirements.

The company said it views tankless commercial water heating as a growing category driven by long-term regulatory trends and increased demand for sustainable building solutions. Like many of Zurn Elkay's existing products, Intellihot's systems are specified into commercial projects and sold through wholesale distribution and independent manufacturers' representatives.

“We are excited about Intellihot, an earlier-stage technology disruptor in the tankless water heating market for commercial and institutional applications,” said Todd A. Adams, Chairman and CEO of Zurn Elkay.

Company Sees Long-Term Growth Opportunity

Adams said the acquisition aligns with the company's strategy of building market share in product categories that offer strong growth potential while complementing its existing water management portfolio.

“As we’ve historically done both organically and through acquisition, we’ve identified a category in which we believe we can establish a meaningful presence and share that has many of the same attributes of our existing business: a specifiable solution in a growing market, part of an industry with longer-term regulatory tailwinds, sold through distribution and our independent third-party rep network, with products that have a real sustainable impact on our customers,” said Adams. “Our balance sheet, leverage, liquidity and cash flow generation remain strong, as do our M&A and innovation funnels, all of which puts us in a great spot as we continue to pursue opportunities for growth both organically and inorganically.”

Second-Quarter Results Ahead of Expectations

Along with announcing the acquisition, Zurn Elkay said its second-quarter financial performance is expected to exceed the outlook the company previously provided.

“We see our second quarter results ahead of the outlook range we provided earlier in the quarter,” said Adams. “We will provide further details on the quarter and our outlook during an earnings call scheduled for Wednesday, July 29, 2026.”