Water management giant Ecolab announced Friday it will purchase CoolIT Systems from private equity firm KKR in a $4.75 billion cash transaction, positioning itself to benefit from the explosive growth in artificial intelligence data center infrastructure.
The company’s stock dropped 1% during pre-market trading following the announcement.
As tech giants pour billions into AI capabilities, they’re moving away from conventional air cooling methods toward advanced liquid-based cooling solutions that can manage the intense heat generated by high-performance computing chips and dense server configurations.
CoolIT, currently owned by KKR investment funds, specializes in creating and producing liquid cooling technologies for large-scale data center operators and colocation facilities. The company counts major semiconductor manufacturers like Nvidia and Advanced Micro Devices among its client base.
According to Ecolab, combining CoolIT’s hardware expertise and thermal engineering capabilities with its own water treatment, chemical solutions, and digital monitoring technologies will create a comprehensive cooling and fluid management service provider.
Ecolab projects that CoolIT will bring in approximately $550 million in revenue over the coming 12-month period.
The acquisition is scheduled to finalize during the third quarter of 2026 and is expected to boost Ecolab’s adjusted diluted earnings per share by 2028.
In related financial news, Ecolab released its first-quarter earnings forecast, projecting adjusted earnings per share between $1.69 and $1.71, representing an increase from the previous year’s $1.50.
Looking ahead to the full 2026 fiscal year, Ecolab maintains its earnings projection of $8.43 to $8.63 per adjusted diluted share, not accounting for the impact of this acquisition.
