11:26 AM EDT, 03/20/2026 (MT Newswires) -- Ecolab ( ECL ) agreed to acquire CoolIT Systems from KKR (KKR) in a $4.75 billion deal as technology companies increasingly prefer liquid cooling for artificial intelligence-driven data centers.

CoolIT manufactures liquid cooling systems for next-gen AI data centers, which are shifting from air cooling to liquid cooling to support rising compute demands, Ecolab ( ECL ) said Friday.

The transaction is expected to rapidly accelerate Ecolab's ( ECL ) data center cooling business and double its global high-tech market opportunity to $10 billion, the water, hygiene and infection prevention solution company said. The deal, which requires approval from regulators, is anticipated to complete in the third quarter.

Ecolab's ( ECL ) shares were down 0.3% in Friday trade. The stock has lost 1.8% so far this year.

CoolIT, which is expected to generate about $550 million in sales over the next 12 months, helps AI data centers improve their performance, reduce downtime and lower water use across operations. The company makes custom-designed solutions for chipmakers Nvidia ( NVDA ) and Advanced Micro Devices ( AMD ) .

"By bringing together CoolIT's engineered cooling technologies with Ecolab's ( ECL ) expertise in water, chemistry and digital service, we can provide our customers a complete cooling solution that improves performance and reliability while reducing water and energy use," Ecolab ( ECL ) Chief Executive Christophe Beck said in a statement. "This acquisition expands our role in serving the AI ecosystem."

Ecolab ( ECL ) estimates the acquisition to be accretive to its adjusted earnings on a per-share basis beginning 2028, excluding amortization costs. The deal is projected to boost sales growth too.

CoolIT didn't respond to MT Newswires' request for comment.

For 2026, Ecolab ( ECL ) continues to expects its adjusted EPS in a range of $8.43 to $8.63, excluding the impact of the CoolIT acquisition, reflecting annual growth of 12% to 15%. The current consensus on FactSet is for non-GAAP EPS of $8.49.

The company forecasts adjusted EPS between $1.69 and $1.71 for the first quarter, representing a year-over-year increase of 13% to 14%. The Street is looking for $1.70. Ecolab ( ECL ) is scheduled to release its full quarterly results on April 28.

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