Ecolab (NYSE:ECL) announced today that it has entered into a definitive agreement to acquire CoolIT Systems, a leader in advanced liquid cooling technology for next-generation AI data centers, from funds managed by KKR.
The transaction, valued at approximately $4.75 billion in cash, represents a significant strategic leap for Ecolab as it seeks to capture the rapidly expanding market for high-performance computing infrastructure.
The purchase price reflects a valuation of 29x estimated next-12-month EBITDA, signaling Ecolab’s high conviction in the sector's growth.
CoolIT Systems is a "pure-play" provider of mission-critical cooling solutions, including coolant distribution units (CDUs) and direct-to-chip cold plates.
As AI workloads push traditional air-cooling systems to their physical limits, CoolIT’s liquid-cooling technology allows hyperscale and colocation operators to run denser, more efficient racks.
The company is expected to generate approximately $550 million in sales over the next 12 months.
Ecolab anticipates the acquisition will be a powerful growth engine, accelerating its total organic sales growth rate by 1% and its Global Water segment by 2%.
The acquisition effectively combines CoolIT’s thermal engineering excellence with Ecolab’s global scale in water chemistry and digital monitoring. This synergy is intended to bolster Ecolab’s "Cooling-as-a-Service" offering, providing an integrated solution that reduces water consumption and downtime for data center operators. By managing the entire fluid lifecycle—from the chemistry of the coolant to the mechanical efficiency of the plates—Ecolab is positioning itself as an indispensable partner for the world’s largest tech companies as they scale their AI footprints.
This deal marks a major exit for KKR, which acquired a majority stake in CoolIT in 2023 when the company was valued at roughly $270 million.