COOLIT SYSTEMS acquired by ECOLAB

KKR, alongside co-investor Mubadala Investment Company, has signed a definitive agreement to sell CoolIT Systems to Ecolab. This transaction marks a highly successful exit for KKR’s Global Impact Fund II, which acquired the company in 2023 for approximately $270 million. The strategic rationale for the deal is driven by the global "arms race" in AI infrastructure. CoolIT’s revenues surged by 300% during KKR’s ownership as its hyperscaler revenue share jumped from 5% to 60%, largely fueled by the shift to liquid-cooled GPUs (e.g., Nvidia). For Ecolab, the acquisition provides an immediate leadership position in the mission-critical cooling segment of the data center industry. A standout feature of the deal is KKR’s "broad-based ownership" program: all 650 employees were granted equity in 2023 and will receive cash payouts at closing ranging from one to over eight years of their annual salary. This exit is KKR’s first North American Global Impact payout and underscores the firm’s strategy of using employee ownership to drive industrial performance. CoolIT will continue to operate under its own brand, led by CEO Jason Waxman, as part of the broader Ecolab platform.

It is worth noting that the fund Kkr / Mubadala took control of Coolit Systems through an LBO in 2023.