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.
Source Fool.com
