Zurn Elkay Water Solutions has signed an agreement to acquire Intellihot, a privately held provider of tankless water heating systems for commercial and institutional buildings. Financial terms of the transaction were not disclosed.
The acquisition will give Zurn Elkay an established presence in the high-efficiency water heating market. The transaction is expected to close early in the third quarter of 2026.
Intellihot provides gas and electric tankless water heaters for customers across healthcare, education, hospitality and other commercial markets. Its net sales are expected to reach approximately $37 million in 2026.
Tankless systems heat water as it is needed instead of continuously maintaining a large volume of hot water in a storage tank. This approach can reduce energy usage, lower operating costs and conserve space within commercial buildings.
Zurn Elkay described Intellihot as an early-stage technology disruptor in commercial and institutional water heating. The company believes the acquisition will provide a foundation for building a meaningful position in an adjacent product category.
The transaction also expands Zurn Elkay’s ability to offer integrated water management solutions to building owners. Intellihot’s water heating products could complement Zurn Elkay’s existing water safety, control, flow, hygiene and drinking water systems.
Zurn Elkay believes the water heating market shares several characteristics with its current businesses. Products are often specified during building design, distributed through established sales channels and supported by independent representatives.
The category also benefits from regulatory and customer demand for more efficient building systems. Intellihot’s products are designed to provide energy and cost savings compared with conventional tank-style water heaters.
Zurn Elkay plans to use its distribution relationships, brand presence and commercial resources to support Intellihot’s expansion. The combination is also expected to create opportunities for product development and broader customer adoption.
The company said its balance sheet, liquidity, leverage and cash flow generation remain strong following the agreement. Zurn Elkay plans to continue pursuing growth through internal investment, product innovation and additional acquisitions.
Zurn Elkay also disclosed that its second-quarter results are expected to exceed the outlook range issued earlier in the quarter. The company plans to provide additional financial details and updated guidance during its earnings call scheduled for July 29, 2026.
KEY QUOTES:
“We are excited about Intellihot, an earlier-stage technology disruptor in the tankless water heating market for commercial and institutional applications. 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.”
“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.”
Todd A. Adams, Chairman and CEO of Zurn Elkay Water Solutions
