Ecolab has completed its acquisition of liquid cooling company CoolIT Systems, in a deal valuing CoolIT at about USD $4.75 billion.
The acquisition adds direct-to-chip liquid cooling to Ecolab's business as demand rises for cooling systems in dense AI data centres. According to Ecolab, CoolIT's year-to-date sales have grown by more than 100%, driven by demand for liquid cooling in AI facilities.
Ecolab said the purchase strengthens its position in water treatment, power-related water systems and cooling for advanced computing. It argues that water is central to AI infrastructure because it is used in chip production, electricity generation and data centre cooling.
The deal also expands Ecolab's high-tech division, which is approaching USD $1.5 billion in annualised sales. That compares with about USD $150 million in annual sales in 2021, before the additions of Ovivo and CoolIT.
AI cooling
CoolIT is known for direct liquid cooling systems used in high-density computing environments. Ecolab plans to combine CoolIT's cooling distribution units and cold plates with its own 3D TRASAR digital monitoring and cooling fluids in a broader cooling platform for AI infrastructure.
The combined system is intended to give operators real-time visibility into cooling performance and help reduce cooling power demand. It is also designed around closed-loop systems that can reduce water use in data centres.
Ecolab said the technology is applicable to AI architectures including NVIDIA Vera Rubin and Grace Blackwell. The company already works with hyperscale customers and said it will continue working with operators and other stakeholders across the power and water ecosystem on next-generation data centre design.
NVIDIA said it has worked with both companies on several liquid-cooling projects. "NVIDIA has collaborated with Ecolab and CoolIT across a broad range of liquid-cooling initiatives, including coolant qualification, coolant health monitoring, cooling infrastructure development, and next-generation AI factory technologies," said Ali Heydari, Technical Director and Distinguished Engineer at NVIDIA, and Saket Karajgikar, Senior Engineering Manager and ASME Fellow at NVIDIA.
"Through collaborations spanning NVIDIA engineering labs, research programs, and large-scale AI infrastructure deployments, Ecolab and CoolIT have consistently demonstrated strong technical expertise, innovation, and responsiveness," said Heydari.
Growth targets
The acquisition is part of Ecolab's effort to build its high-tech business into a larger revenue source. The company is targeting USD $4 billion in annual sales from the division by 2030, with operating income margins of 25%.
Ecolab described the unit as its largest growth engine and said it is expanding at more than 25% a year. It expects the business to contribute more than two percentage points to annual sales growth as margins widen.
Christophe Beck, Chairman, President and Chief Executive Officer of Ecolab, said the transaction broadens the company's role in the AI supply chain. "With Ecolab's breakthrough solutions across fabs, power and data centers, AI can now scale more rapidly while respecting communities, the environment and natural resources," Beck said.
He also linked the acquisition to Ecolab's broader financial outlook. "With strong and consistent core businesses and new growth engines in high tech and life sciences that capture major new trends, we have never been better positioned to deliver on our growth commitments," Beck said.
"We therefore remain confident in our ability to drive sustained organic revenue growth of 5% to 7%, operating income margins well beyond 20%, and consistent EPS growth of 12% to 15% for the years to come," he added.
Earnings impact
Ecolab also updated its earnings guidance to reflect the completed transaction and related financing and amortisation costs. It expects adjusted diluted earnings per share for 2026 to be in the range of $8.03 to $8.23, representing growth of 7% to 9% versus 2025.
For the second half of 2026, Ecolab expects organic sales growth of 6% to 7%. Underlying earnings per share growth for its base business in the period is expected to be 14% to 15%, but acquisition-related non-cash amortisation and financing costs are expected to reduce earnings by $0.20 per share in each of the third and fourth quarters.
Those costs are expected to leave adjusted diluted earnings per share growth for the second half at 4% to 5%. Ecolab expects adjusted earnings growth to return to the 12% to 15% range after 2026 as contributions from CoolIT increase and amortisation linked to the Nalco acquisition rolls off in 2027.