Zurn Elkay Water Solutions’ former 10% owner sells $299.46m in stock

Published 19/02/2025, 03:02
Zurn Elkay Water Solutions’ former 10% owner sells $299.46m in stock

In a significant financial move, April Jalazo, a former 10% owner of Zurn Elkay Water Solutions Corp (NYSE:ZWS), sold a substantial portion of her holdings in the company. On February 13, 2025, Jalazo sold 8,912,500 shares of common stock at a price of $33.60 per share, totaling approximately $299.46 million. This transaction was part of a secondary offering managed by Evercore Group L.L.C. The sale represents about 5% of the company’s current $6.1 billion market capitalization, with the stock currently trading at $35.79.

The shares were directly held by Ice Mountain LLC, with which Jalazo is affiliated through a complex ownership structure. Despite this divestment, Jalazo still holds a significant stake in the company through various trusts, maintaining a total of 15,002,819 shares post-sale. According to InvestingPro, ZWS maintains strong liquidity with a current ratio of 2.91, indicating robust financial health.

This sale follows an earlier acquisition on August 13, 2024, where Jalazo acquired 461,155 shares due to an escrow share deposit release related to the company’s merger with Elkay Manufacturing Company in 2022. However, this acquisition did not involve any direct financial transaction.

Investors will be watching closely how these changes in Jalazo’s holdings might influence Zurn Elkay Water Solutions’ stock performance in the market.

In other recent news, Zurn Elkay Water Solutions Corporation has announced significant developments. The company disclosed its financial results for the quarter ending December 31, 2024, providing essential data on its financial health. Additionally, Zurn Elkay has initiated a public offering of shares held by Ice Mountain LLC, a former stockholder. As part of this offering, the company plans to repurchase approximately $50 million worth of its common stock. The offering includes 7,750,000 shares of Zurn Elkay’s common stock, with the underwriters being granted a 30-day option to buy an additional 1,162,500 shares from Ice Mountain LLC. Evercore ISI is leading the offering, with Baird as an additional book-running manager and a team of co-managers, including BNP Paribas (OTC:BNPQY), Deutsche Bank (ETR:DBKGn) Securities, Mizuho (NYSE:MFG), Oppenheimer & Co., and Stifel. These recent developments reflect the ongoing activities and strategic decisions at Zurn Elkay.

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