Ecolab acquires CoolIT for $4.75 billion to capitalize on the AI data center expansion. Ecolab (ECL.N) announced Friday its intent to buy CoolIT Systems from KKR (KKR.N) for approximately $4.75 billion in cash, aiming to leverage the rapidly increasing demand for liquid-based cooling in data centers driven by artificial intelligence. The water solutions firm’s stock decreased by 1% in premarket activity.
Technology firms are heavily boosting their investments in AI infrastructure, resulting in a move away from conventional air-based cooling towards more effective liquid systems capable of managing greater chip densities and power usage. CoolIT, a company held by funds overseen by KKR, develops and produces liquid cooling systems utilized by large-scale and colocation operators. Its clientele includes chip manufacturers such as Nvidia (NVDA.O) and Advanced Micro Devices (AMD.O).
Ecolab anticipates that CoolIT's hardware offerings and knowledge in thermal engineering will enhance the company’s existing strengths in water technology, chemistry, and digital monitoring, enabling it to become a more complete provider of cooling and fluid management solutions.
Ecolab projects that CoolIT's revenue could reach around $550 million over the subsequent 12 months.
The acquisition is anticipated to finalize in the third quarter of 2026 and will begin to positively influence Ecolab’s adjusted earnings per share by 2028. In a separate statement, the company is forecasting first-quarter adjusted earnings per share of $1.69-1.71, compared to $1.50 in the prior year.
For the entirety of 2026, Ecolab continues to project adjusted earnings per share within the $8.43–8.63 range, not including the effect of this transaction.
Source: Reuters