Zurn Elkay Water Solutions Corporation Announces Divestiture

Rhea-AI Summary

Zurn Elkay Water Solutions Corporation (NYSE: ZWS) has divested four wholly-owned subsidiaries with asbestos liabilities and related assets to Zilco Holdings, Inc. As a result, these liabilities and related insurance assets will not be included in Zurn Elkay's consolidated year-end 2023 balance sheet.

MILWAUKEE--(BUSINESS WIRE)-- Zurn Elkay Water Solutions Corporation (“Zurn Elkay”) (NYSE: ZWS) announced that it divested four wholly-owned subsidiaries that hold asbestos liabilities and related assets and certain other assets and liabilities, to Zilco Holdings, Inc. (“Zilco Holdings”). The four divested subsidiaries are Zurn Industries, LLC, OEI, LLC, OEP, LLC and Krikles, Inc.

As a result of the divestiture, all asbestos liabilities and related insurance assets will not be included in Zurn Elkay’s consolidated year-end 2023 balance sheet.

Existing employees, customers and vendors of Zurn Elkay will experience no change in their business interactions with Zurn Elkay as a result of the divestiture.

About Zurn Elkay

Headquartered in Milwaukee, Wisconsin, Zurn Elkay Water Solutions is a growth-oriented, pure-play water management business that designs, procures, manufactures, and markets what we believe to be the broadest sustainable product portfolio of specification-driven water management solutions to improve health, human safety and the environment. Zurn Elkay’s product portfolio includes professional grade water safety and control products, flow system products, hygienic and environmental products, and drinking water products for public and private spaces that deliver superior value to building owners, positively impact the environment and human hygiene and reduce product installation time. Additional information about Zurn Elkay Water Solutions can be found at www.zurnelkay.com.

About Zilco Holdings

Zilco Holdings is an entity specializing in real estate and the management of asbestos and other legacy liabilities and related corporate assets. Zilco Holdings is an affiliate of Financial Asset Recovery Analytics, LLC (“FARA Recovery”), a leader in solutions for companies holding contingent and legacy liabilities. For more information, please visit www.fararecovery.com.

Cautionary Statement on Forward-Looking Statements

Information in this release may involve outlook, expectations, beliefs, plans, intentions, strategies or other statements regarding the future, which are forward-looking statements. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to Zurn Elkay Water Solutions as of the date of this release, and Zurn Elkay Water Solutions assumes no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance, and actual results could differ materially from current expectations. Numerous factors could cause or contribute to such differences. Please refer to “Risk Factors” and “Cautionary Notice Regarding Forward-Looking Statements” in Zurn Elkay’s report on Form 10-K for the period ended December 31, 2022, as well as Zurn Elkay’s subsequent annual, quarterly and current reports filed on Forms 10-K, 10-Q and 8-K from time to time with the Securities and Exchange Commission for a further discussion of the factors and risks associated with the business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231215106151/en/

Investor Relations:

Dave Pauli, Vice President – Investor Relations

414-223-7770

Media Relations:

Angela Hersil, Vice President – Corporate Communications

855-480-5050

414-808-0199

Corporate.Communications@zurn.com

Source: Zurn Elkay Water Solutions Corporation

FAQ

What subsidiaries did Zurn Elkay divest as per the PR?

Zurn Elkay divested Zurn Industries, LLC, OEI, LLC, OEP, LLC, and Krikles, Inc.

What are the implications of the divestiture on Zurn Elkay's balance sheet?

The divestiture ensures that all asbestos liabilities and related insurance assets will not be included in Zurn Elkay's consolidated year-end 2023 balance sheet.

Will the divestiture impact Zurn Elkay's business interactions with employees, customers, and vendors?

No, the divestiture will not result in any changes to the business interactions with Zurn Elkay for its existing employees, customers, and vendors.

What is the ticker symbol of Zurn Elkay Water Solutions Corporation?

The ticker symbol of Zurn Elkay Water Solutions Corporation is ZWS.