KKR has agreed to sell its majority stake in CoolIT Systems to Ecolab for approximately $4.75 billion in cash, with the transaction expected to close in the third quarter of 2026. KKR originally acquired a majority interest in CoolIT in May 2023 for about $270 million, turning a modest investment into a substantial return.
KKR’s Q4 2025 earnings report showed an earnings per share of $1.12, down from $1.32 in the same quarter a year earlier, and total operating earnings of $1.28 billion, a decline from $1.40 billion in Q3 2025 but an increase from $1.10 billion in Q4 2024. The sale provides KKR with a large cash influx that it can redeploy into its core private‑equity and alternative‑asset strategies, reinforcing its Global Impact focus on sustainable, high‑growth technology sectors.
Ecolab’s CEO Christophe Beck said, "AI is transforming the demands on data centers, and liquid cooling is one of the critical technologies that makes advanced computing possible." He added, "By bringing together CoolIT's engineered cooling technologies with Ecolab's expertise in water, chemistry and digital service, we can provide our customers a complete cooling solution." Ecolab’s EVP & GM of Global Water Solutions, Josh Magnuson, noted, "Data centers are at the heart of an AI‑driven future, and their cooling needs are becoming increasingly complex. By adding a sophisticated CaaS offering and smart CDU to our portfolio of solutions, Ecolab is bringing together decades of innovation, proprietary technology and deep cooling expertise to help data centers achieve operational excellence and accelerate growth."
Ecolab has updated its outlook following the acquisition, projecting adjusted diluted earnings per share of $1.69 to $1.71 for Q1 2026 and $8.43 to $8.63 for the full year 2026, excluding CoolIT. The deal values CoolIT at 29 times next‑12‑month and 24 times 2027 adjusted EBITDA, underscoring the premium Ecolab is paying for advanced liquid‑cooling technology.
The transaction reflects the accelerating demand for data‑center infrastructure driven by AI and high‑performance computing. By integrating CoolIT’s liquid‑cooling solutions—such as coolant distribution units, cold plates and direct‑to‑chip cooling—Ecolab can offer a comprehensive cooling portfolio that supports higher rack densities and improved power efficiency. The acquisition is expected to double Ecolab’s Global High‑Tech market opportunity from $5 billion to $10 billion and accelerate organic sales growth.
The sale marks a profitable exit for KKR, turning a $270 million investment into a $4.75 billion cash transaction, while positioning Ecolab as a leading provider of end‑to‑end cooling solutions for AI‑driven data centers. The deal signals a strategic shift for both companies: KKR refocuses on its core private‑equity mandate, and Ecolab expands its footprint in a high‑growth, technology‑centric market.
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