RBS Global, Inc., the parent company of Rexnord Corporation, will acquire the plumbing products business of Jacuzzi Brands, Inc. for $950 million in cash.
Rexnord anticipates the purchase price will be financed through an equity investment by private equity firm Apollo Management and its affiliates of $290 million and debt financing of approximately $660 million. This acquisition, which is expected to close in the first quarter 2007, will create a new strategic water management platform for Rexnord.
With this acquisition, Rexnord, a manufacturer of highly engineered power transmission, aerospace and other precision motion technology products, adds another strategic platform.
Zurn is in the multibillion dollar non-residential construction and replacement market for plumbing fixtures and fittings. It designs and manufactures plumbing products used in commercial and industrial construction, renovation and facilities maintenance markets in North America.
The acquired business will operate as a separate platform of the company, with facilities located in six states.