Ecolab (ECL) Stock Buys CoolIT Systems for $4.7B in Push into AI Data Centers

TLDR

• Ecolab has reached an agreement to purchase CoolIT Systems from KKR for $4.75 billion in cash
• CoolIT produces liquid cooling solutions for data centers, with Nvidia and AMD among its core clients
• The transaction is valued at 29x CoolIT’s forecast EBITDA for the coming 12 months
• CoolIT is projected to bring in roughly $550 million in revenue over the next 12 months
• Ecolab shares dropped approximately 1% during Friday’s premarket trading session

(SeaPRwire) –   Ecolab (ECL) revealed on Friday that it will acquire CoolIT Systems from private equity firm KKR for $4.75 billion in an all-cash deal, as it targets the fast-expanding liquid cooling market for AI data centers.

Ecolab Inc., ECL

CoolIT designs and manufactures liquid cooling systems deployed by hyperscale and colocation data center operators. Its client roster includes Nvidia and AMD — two of the most prominent players in AI chip manufacturing.

The deal provides Ecolab with direct access to the infrastructure segment of the AI build-out. Data center operators are increasingly moving away from traditional air cooling to adopt liquid-based systems, which handle higher chip densities and power loads far more efficiently.

Ecolab CEO Christophe Beck stated the acquisition “expands our role in serving the AI ecosystem” and establishes the company as a partner to the world’s largest technology enterprises.

The $4.75 billion purchase price equals 29 times CoolIT’s projected earnings before interest, taxes, depreciation, and amortization for the upcoming 12 months. Ecolab will finance the acquisition through new transaction-specific debt.

Per Ecolab’s estimates, CoolIT is expected to generate around $550 million in sales over the next 12 months.

The company noted the deal will boost its organic sales growth rate by 1 percentage point starting one year after the transaction closes.

Ecolab stock slipped roughly 1% to $256.23 in premarket trading on Friday. This type of price movement for a large acquisition is not unusual — markets typically require time to digest the implications of the purchase price.

Deal Timeline and Earnings Impact

Pending regulatory approvals, the transaction is expected to close in the third quarter of 2026.

Ecolab stated the deal will be accretive to its adjusted diluted earnings per share starting in 2028.

For full-year 2026, Ecolab kept its adjusted diluted EPS guidance in the range of $8.43 to $8.63, excluding the impact of the CoolIT acquisition. That range aligns with analyst expectations of $8.49 per share, per FactSet data.

Ecolab also released first-quarter 2026 guidance, forecasting adjusted EPS of $1.69 to $1.71, up from $1.50 recorded in the same period the prior year.

CoolIT’s Role in the AI Infrastructure Stack

CoolIT’s technology is focused exclusively on data center liquid cooling. Ecolab views the company’s hardware and thermal engineering capabilities as complementary to its own core strengths in water treatment, chemistry, and digital monitoring.

Ecolab says the combined business will deliver a more comprehensive solution for data center operators managing both cooling and fluid management requirements.

KKR, which held its stake in CoolIT through its managed funds, will fully exit its investment via this sale.

Ecolab projected that integrating CoolIT will accelerate its organic growth rate by 1 percentage point, starting one year after the deal closes.

The transaction is scheduled to close in Q3 2026, and Ecolab expects it to be earnings accretive by 2028.