Zurn Elkay Water Solutions Corporation announced it has signed an agreement to acquire Intellihot Inc., a privately held leader in tankless water heater solutions serving the healthcare, education, hospitality, and commercial end markets.

“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. “This transaction will be a strong initial step into an adjacent category where building owners demand integrated solutions from partners like Zurn Elkay and Intellihot that they know and trust. A combination with Intellihot, which we have cultivated for years, will further our long-term growth strategy and will bring an established presence in the water heating end market.

“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.”

Intellihot offers gas and electric tankless water heaters with market-leading energy efficiency and cost savings compared to traditional tanked water heaters. Intellihot’s net sales are expected to be approximately $37 million in 2026. The transaction is expected to close early in the third quarter.

Source: Zurn Elkay