RBS Global Inc., parent company of Rexnord Corp., announced Oct. 11 that Rexnord will acquire Zurn Industries Inc., the Erie, PA-based plumbing products business of Jacuzzi Brands, Inc., for $950 million in cash. According to RBS, the purchase will create a new water management business at Rexnord, which is based in West Milwaukee, WI.

Bob Hitt, Rexnord president and CEO, said that there will be minimal integration work for Rexnord because Zurn complements the company's power transmission business. Hitt also said Zurn will operate as a separate platform with facilities in six states.

Separately, RBS's private equity owner, Apollo Management L.P., New York, NY, has agreed to purchase Jacuzzi Brands, Inc. in a $1.25 billion deal, which includes the assumption of outstanding debt approximating $260 million, net of cash. Jacuzzi, through its subsidiaries, is a global manufacturer and distributor of branded bath and plumbing products for the residential, commercial and institutional markets.

Under the terms of the merger agreement, Jacuzzi Brands' shareholders will receive $12.50 per share in cash. The transaction will be financed through a combination of equity contributed by Apollo and debt financing. The board of directors of Jacuzzi Brands has approved the merger agreement and has recommended to Jacuzzi Brands' shareholders that they vote in favor of the transaction. Jacuzzi Brands President and CEO Al Marini and his team will continue to run the water management platform. The bath business will become an independent portfolio company of Apollo.

Thomas B. Waldin, chairman of Jacuzzi Brands, commented, "In the year since we put Al Marini in charge of our overall operations, he and his team have made significant progress in improving the bath segment and further strengthening Zurn's leadership position."