Ecolab, a global sustainability company, has agreed to acquire CoolIT Systems for US$ 4.75 billion in cash. CoolIT, owned by funds managed by KKR, develops liquid cooling systems for data centers, including coolant distribution units, cold plates and direct-to-chip technologies. It is expected to generate roughly US$ 550 million in sales over the next 12 months.
According to a press release, the Ecolab deal would increase its exposure to the fast-growing data center sector and double its addressable high-tech market to US$ 10 billion. CoolIT’s existing relationships with hyperscale and colocation operators, along with its work with chipmakers such as NVIDIA and AMD, are expected to support growth. The deal is expected to close in the third quarter of 2026 pending approvals, and will be financed with new debt.
Christophe Beck, Chairman and CEO, Ecolab, said, “AI is transforming the demands on data centers, and liquid cooling is one of the critical technologies that makes advanced computing possible, this acquisition expands our role in serving the AI ecosystem semiconductor fabs that manufacture chips, power plants that fuel the chips, and data centers that utilize the chips and positions Ecolab as the partner that the world’s largest technology companies rely on to grow responsibly and sustainably.”
The company expects the acquisition to lift its organic sales growth by about 1 percent, with a 2 percent boost to its Global Water segment, starting one year after closing. The deal would become accretive to adjusted earnings per share by 2028, excluding non-cash amortization costs.
The acquisition comes as data centers shift from air to liquid cooling to handle rising computing demands driven by artificial intelligence. Ecolab will add CoolIT’s technology to expand its position in the data center cooling market and strengthen its existing services in water management, chemicals and monitoring. Ecolab’s net debt is expected to rise to about three times adjusted EBITDA, before declining to around two times within two years.