Ecolab Acquires CoolIT Systems for $4.75B

By Chris Stiles • Friday, March 20 14:50 • Permanent Link

Ecolab, a global leader in water, hygiene, and infection prevention solutions, has announced its acquisition of CoolIT Systems, a high-growth leader in liquid cooling technology for next-gen AI data centers. The acquisition is expected to significantly strengthen Ecolab's global high-tech growth engine and accelerate its organic sales growth rate.

CoolIT Systems is projected to generate approximately $550 million in sales over the next 12 months. This acquisition is anticipated to accelerate Ecolab’s global water’s organic sales growth rate by 2% and Ecolab’s total organic sales growth rate by 1%. The acquisition is valued at approximately $4.75 billion in cash at the closing of the transaction.

Ecolab expects the acquisition to be accretive to its 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, with the contribution building significantly thereafter.

The acquisition will be financed with new transaction debt, resulting in an anticipated pro forma net debt to adjusted EBITDA of approximately 3x at transaction close, returning to 2x leverage by the end of the second year after closing.

For the 2026 EPS outlook, Ecolab expects first-quarter 2026 adjusted diluted earnings per share in the $1.69 to $1.71 range, rising 13% to 14% compared with adjusted diluted earnings per share of $1.50 a year ago. For the full year 2026, excluding the impact of CoolIT, Ecolab continues to expect adjusted diluted earnings per share in the $8.43 to $8.63 range, rising 12% to 15% compared with adjusted diluted earnings per share of $7.53 in 2025.

The acquisition is expected to close in the third quarter of 2026, subject to regulatory approvals and other customary closing conditions. Ecolab will release its first quarter 2026 results on Tuesday, April 28, 2026.

Today the company's shares have moved -0.24% to a price of $277.07. If you want to know more, read the company's complete 8-K report here.

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