U.S. Water Treatment Company Pursues $6 Billion Acquisition Targeting AI Data Center Cooling

On March 20, Ecolab Inc. (NYSE: ECL) agreed to acquire CoolIT Systems, a leading provider of advanced liquid-cooling technology for AI data centers, in an all-cash deal valued at approximately $4.75 billion (about ₩6.4 trillion). The company expects CoolIT to generate roughly $550 million in revenue over the next 12 months. Ecolab said the acquisition will expand its global high-tech and data-center cooling portfolio, drive higher growth rates after 2027, and begin contributing to adjusted EPS in 2028. To fund the transaction, Ecolab plans to raise its net-debt-to-adjusted-EBITDA ratio to about 3× at closing via new term debt, then reduce it to around 2× within two years. The company also reaffirmed its 2026 first-quarter and full-year adjusted EPS guidance, each targeting double-digit year-over-year growth.

On March 31, non-executive director Michael Larson acquired approximately 19,000 shares of Ecolab common stock under the firm’s compensation and deferred-compensation program, boosting the market value of his holdings to about $5 million (roughly ₩7 billion). Then, on April 10, Ecolab arranged a $4.75 billion unsecured term-loan facility led by Citibank to support its planned acquisition of Frigio Holdings, creating additional financing capacity for future deals following the CoolIT purchase.

In its February 10 release of fiscal 2025 fourth-quarter results, Ecolab reported record quarterly performance and set 2026 adjusted EPS guidance at 12–15% growth over the prior year, underscoring confidence in its mid- to long-term outlook. Since announcing the CoolIT acquisition and entry into the AI data-center direct chip-cooling market, major brokerages such as RBC Capital have maintained or reaffirmed their buy ratings and price targets, citing these growth opportunities. (Source: ecolab.com)

Ecolab is a global leader in water treatment, hygiene, and infection-prevention solutions for industrial and service customers. It has been increasing its focus on high-value-added, high-tech segments such as semiconductor manufacturing and data centers. As AI adoption accelerates, power and cooling efficiency have become critical competitive factors for data centers, driving a surge in strategic M&A among companies with both liquid-cooling and water-treatment capabilities.