KKR Announces $4.75 Billion Sale of CoolIT Systems to Ecolab
KKR, a leading global investment firm, has entered into a definitive agreement to sell CoolIT Systems to Ecolab in a transaction valued at $4.75 billion, marking one of KKR’s largest recent realizations and generating approximately 15 times the original equity invested including distributions, while also delivering significant value to employees and co-investors such as Mubadala Investment Company, which participated in the investment alongside KKR
Transaction Highlights and Strategic Significance
The transaction underscores the growing importance of advanced cooling technologies in the era of artificial intelligence and high-performance computing, as demand for data center efficiency continues to rise globally, and upon completion of the deal, all CoolIT employees will receive substantial cash payouts tied to their ownership stakes in the company, reinforcing KKR’s long-standing commitment to broad-based employee ownership and value creation across its portfolio companies
CoolIT’s Leadership in Liquid Cooling Technology
With more than 25 years of innovation, CoolIT Systems has established itself as a pioneer in liquid cooling solutions for data centers, designing and manufacturing advanced systems that enable sustainable growth in computing infrastructure while addressing the challenges posed by increasing AI-driven workloads, and unlike traditional air-cooled data centers where cooling can account for up to 50% of total energy consumption, liquid cooling solutions offered by CoolIT reduce energy usage for cooling by approximately 30 to 40 percent while also minimizing water consumption through closed-loop systems
Today, CoolIT’s technologies are deployed in more than 300 data centers worldwide, where they are used by leading hyperscalers and data center operators to enhance energy efficiency, support higher-density computing environments, and enable the next generation of AI infrastructure, positioning the company as a critical enabler of modern digital ecosystems
Investment Through KKR’s Global Impact Strategy
KKR acquired CoolIT Systems in 2023 through its Global Impact Fund II, a strategy focused on scaling innovative commercial solutions that address global challenges such as energy efficiency and sustainability, and since the acquisition, CoolIT has delivered measurable environmental impact, including an estimated 2.18 billion kilowatt-hours of energy savings in 2025 alone, equivalent to powering approximately 200,000 homes for one year, highlighting the company’s contribution to reducing the environmental footprint of data centers
According to Kyle Matter, Managing Director and Head of North America Global Impact at KKR, the firm recognized early on that rapid growth in computing demand would create significant challenges for data center efficiency, particularly given the energy- and water-intensive nature of traditional cooling systems, and by investing in CoolIT, KKR sought to support a solution that enhances critical infrastructure while reducing resource consumption, aligning with its broader investment philosophy of generating both financial returns and positive societal impact
Employee Ownership and Financial Rewards
A defining feature of KKR’s investment approach is its emphasis on employee ownership, and at the time of acquisition, CoolIT implemented a broad-based ownership program that allowed employees across the organization to participate in the company’s success, fostering a culture of accountability, innovation, and long-term value creation, and with the completion of the sale, approximately 650 employees will receive cash payouts ranging from about one year of annual salary to more than eight years of annual pay, representing a significant financial benefit for the workforce
In addition to these payouts, employees will also have access to pre-paid financial coaching and tax preparation services, ensuring that they can effectively manage and maximize the value of their earnings, and this milestone represents KKR’s first broad-based ownership payout in Canada as well as the first for its Global Impact strategy in North America, further demonstrating the scalability and effectiveness of this model
Operational Growth and Business Expansion
Under KKR’s ownership, CoolIT Systems achieved substantial operational growth and transformation, driven by a strong focus on innovation, customer relationships, and manufacturing expansion, and since 2023, the company has doubled its workforce by adding more than 300 new jobs, expanded its manufacturing footprint to over 300,000 square feet, and increased its coolant distribution unit capacity by 25 times, positioning the business to meet rapidly growing demand
These efforts have also supported significant financial growth, with projections indicating approximately four times revenue growth and ten times EBITDA growth through 2026, reflecting the scalability of CoolIT’s business model and its ability to capitalize on the expanding market for high-performance computing and AI-driven infrastructure
Leadership Continuity and Future Direction
Following the completion of the transaction, CoolIT’s leadership team, led by CEO Jason Waxman, is expected to remain in place and continue operating the business under the CoolIT brand, ensuring continuity in strategy and execution while leveraging the additional resources and capabilities of Ecolab, and this continuity is expected to support ongoing innovation and growth as the company enters its next phase of development
Jason Waxman emphasized that the transaction represents a milestone achieved through the combined strengths of CoolIT’s technical expertise, KKR’s investment capabilities, and Ecolab’s track record in acquiring and scaling advanced technologies, and by integrating CoolIT’s liquid cooling solutions with Ecolab’s expertise in water, chemistry, digital technologies, and global services, the combined entity aims to deliver comprehensive, end-to-end cooling solutions for data centers worldwide
The Role of Employee Ownership in Value Creation
KKR has consistently highlighted the importance of employee engagement and ownership as key drivers of business success, and since 2011, more than 85 KKR portfolio companies have awarded billions of dollars in equity to over 190,000 non-senior management employees globally, demonstrating the firm’s commitment to sharing financial success with employees and fostering a culture of shared responsibility and performance
Pete Stavros, Partner and Global Co-Head of Private Equity at KKR, noted that CoolIT exemplifies the power of an ownership culture in driving innovation and execution, as employees who have a direct stake in the company’s success are more motivated to contribute to its growth and long-term sustainability, resulting in stronger outcomes for both the business and its workforce
Support from Mubadala and Investment Partners
The partnership between KKR, CoolIT, and Mubadala Investment Company has been instrumental in driving the company’s growth and success, with Mubadala’s Head of Energy and Sustainability, Private Equity, Abdulla Mohamed Shadid, highlighting the value created through active management and aligned ownership, and expressing confidence that CoolIT will continue to build on its momentum as it transitions into its next chapter under Ecolab’s ownership
Transaction Timeline and Advisory Support
The transaction remains subject to customary regulatory approvals and is expected to close in the third quarter of 2026, and KKR and CoolIT have engaged leading financial and legal advisors to support the process, including Morgan Stanley & Co. LLC and Baird as financial advisors and Kirkland & Ellis as legal advisor, ensuring a structured and efficient transaction process
About CoolIT Systems
CoolIT Systems specializes in scalable liquid cooling solutions for high-performance computing environments, offering a comprehensive portfolio of modular direct liquid cooling products that enable increased rack density, improved component performance, and enhanced power efficiency across a wide range of applications, and through its research and development centers in Calgary and Taipei, global manufacturing operations in Canada, China, and Vietnam, and on-site support in more than 80 countries, CoolIT serves customers worldwide while driving the adoption of efficient, high-density computing technologies
About KKR
KKR is a leading global investment firm that provides alternative asset management, capital markets, and insurance solutions, with a focus on generating attractive investment returns through a disciplined and long-term approach, and by leveraging its global network, experienced professionals, and commitment to supporting portfolio companies, KKR continues to play a significant role in shaping industries and driving sustainable growth across markets worldwideThe sale of CoolIT Systems to Ecolab represents a landmark transaction that highlights the growing importance of energy-efficient technologies in the data center industry, while also demonstrating KKR’s ability to identify high-impact investment opportunities, scale innovative businesses, and deliver strong financial returns alongside meaningful benefits for employees and stakeholders, positioning CoolIT for continued success as it joins forces with Ecolab to address the evolving demands of AI-driven computing infrastructure on a global scale
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