Key Highlights
- Ecolab is purchasing CoolIT Systems from KKR in a $4.75 billion all-cash transaction
- CoolIT specializes in liquid cooling technology for data centers, serving clients including Nvidia and AMD
- The acquisition price stands at 29 times CoolIT’s anticipated EBITDA for the upcoming 12-month period
- CoolIT’s revenue is projected to reach approximately $550 million over the next year
- Shares of Ecolab declined about 1% during Friday’s premarket session
Ecolab (ECL) revealed on Friday its plans to purchase CoolIT Systems from KKR in a $4.75 billion cash transaction, marking a strategic push into the rapidly expanding liquid cooling sector for artificial intelligence data centers.
CoolIT specializes in creating and producing liquid cooling solutions utilized by hyperscale data center providers and colocation facilities. The company’s client roster features prominent AI chip manufacturers Nvidia and AMD.
This acquisition provides Ecolab with strategic access to the infrastructure component of the ongoing AI expansion. As chip densities and power requirements increase, data center operators are transitioning away from conventional air cooling methods toward liquid-based cooling systems that deliver superior performance.
According to Ecolab CEO Christophe Beck, the deal “expands our role in serving the AI ecosystem” while establishing the company as a strategic partner to leading global technology firms.
The acquisition is valued at 29 times CoolIT’s anticipated EBITDA over the next twelve months. Ecolab plans to finance the transaction using newly acquired debt.
Based on Ecolab’s projections, CoolIT is on track to produce approximately $550 million in revenue during the next 12-month period.
According to the company’s statement, the acquisition will boost its organic sales growth by one percentage point starting one year post-closing.
Shares of Ecolab experienced a decline of approximately 1% to $256.23 during Friday’s premarket trading session. Such market reactions to major acquisitions are fairly typical as investors evaluate the financial implications.
Transaction Timeline and Financial Projections
The acquisition is slated for completion during the third quarter of 2026, pending standard regulatory clearances.
Ecolab projects the transaction will contribute positively to its adjusted diluted earnings per share starting in 2028.
For the complete 2026 fiscal year, Ecolab reaffirmed its adjusted diluted EPS forecast ranging from $8.43 to $8.63, which excludes any CoolIT-related impacts. This projection aligns with Wall Street consensus estimates of $8.49 per share based on FactSet data.
Additionally, Ecolab provided first-quarter 2026 guidance, anticipating adjusted EPS between $1.69 and $1.71, representing an increase from the prior year’s $1.50.
CoolIT’s Position in AI Data Center Infrastructure
CoolIT’s expertise centers entirely on liquid cooling solutions designed for data center applications. Ecolab views the company’s hardware capabilities and thermal engineering knowledge as highly complementary to its existing portfolio in water treatment, chemical solutions, and digital monitoring systems.
The combined entity will deliver a comprehensive solution package for data center operators addressing both cooling infrastructure and fluid management requirements, according to Ecolab.
KKR, which held CoolIT through its investment funds, will divest its stake through this transaction.
Ecolab forecasts that integrating CoolIT will enhance its organic growth trajectory by one percentage point annually, beginning twelve months following deal completion.
The transaction is scheduled to finalize in the third quarter of 2026, with Ecolab anticipating positive earnings contributions by 2028.
