Ecolab, Inc. (ECL) announced Friday that it has entered into a definitive agreement to acquire CoolIT Systems from funds managed by KKR for approximately $4.75 billion in cash at the closing of the transaction, subject to customary adjustments.
CoolIT is a pure-play next-gen AI data center liquid cooling technology company with end-to-end capabilities that designs and manufactures high-performance liquid cooling systems, including coolant distribution units (CDUs), cold plates and direct-to-chip cooling technologies.
CoolIT is expected to generate approximately $550 million in sales over the next 12 months. The acquisition positions Ecolab as a comprehensive cooling solutions provider by advancing its capabilities across the rapidly growing data center market.
This integrated solution helps AI data centers improve performance, reduce downtime and lower water use across their operations.
With CoolIT's rapid sales growth, the acquisition is expected to significantly strengthen the company's Global High-Tech growth engine and accelerate Global Water's organic sales growth rate by 2% and Ecolab's total organic sales growth rate by 1%.
CoolIT will double Ecolab's Global High-Tech market opportunity from $5 billion to $10 billion, with this market growing strong double-digits annually. The acquisition is expected to be accretive to Ecolab's sales growth, accelerating Global Water's organic sales growth rate by 2% and Ecolab's 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.
The acquisition will be financed with new transaction debt. The acquisition is expected to close in the third quarter of 2026, subject to regulatory approvals and other customary closing conditions.
Looking ahead, Ecolab expects adjusted earnings in a range of $1.69 to $1.71 per share for the first quarter, and continues to expect adjusted earnings in a range of $8.43 to $8.63 per share for the full-year 2026, excluding the impact of CoolIT.
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