Ecolab Acquires KKR's CoolIT for $4.75 Billion

(ECL) announced it will acquire CoolIT Systems from funds managed by KKR for approximately $4.75 billion in cash, subject to customary adjustments, with the transaction expected to close in the third quarter of 2026. CoolIT Systems is a pure-play next-gen AI data center liquid cooling technology company, designing and manufacturing high-performance liquid cooling systems including coolant distribution units, cold plates, and direct-to-chip cooling technologies.

CoolIT is projected to generate approximately $550 million in sales over the next 12 months. This acquisition strategically positions Ecolab as a comprehensive cooling solutions provider, significantly advancing its capabilities within the rapidly expanding data center market.

The deal is expected to double Ecolab's Global High-Tech market opportunity from $5 billion to $10 billion, a market growing strong double-digits annually. The acquisition will accelerate Global Water's organic sales growth rate by 2% and Ecolab's total organic sales growth rate by 1%, beginning one year after closing.

Excluding non-cash amortization costs, the transaction is expected to be accretive to adjusted diluted earnings per share in 2028. Ecolab will finance the acquisition with new transaction debt and reaffirmed its adjusted earnings guidance for the first quarter ($1.69 to $1.71 per share) and full-year 2026 ($8.43 to $8.63 per share), excluding the impact of CoolIT.