Netted 30 billion RMB in profit over three years—KKR is exiting again.

Originally titled 'China Private Equity Investment' (ID: PE-China) Author: Wei Yajun Photography: Bob KKR (including its partners) achieved a paper return of over 17x in three years. A flawless exit. Recently, Ecolab Inc., a global leader in water treatment and sustainable development solutions, announced it will formally acquire CoolIT Systems—a developer of liquid cooling systems for data centers—for approximately USD 4.75 billion in cash (roughly RMB 32.8 billion). CoolIT Systems is currently majority-owned by funds managed by KKR. In May 2023, KKR, leading a consortium including partners, acquired a majority stake in CoolIT Systems for about USD 270 million. The transaction is expected to close in Q3 2026. An expensive acquisition Valuation far exceeds traditional industrial benchmarks According to the deal terms, this acquisition’s valuation is notably 'expensive.' Reports indicate that the USD 4.75 billion price tag equates to roughly 29x CoolIT’s projected adjusted EBITDA for the next 12 months—and 24x its projected adjusted EBITDA for fiscal year 2027. This valuation significantly surpasses typical multiples seen in traditional industrial M&A. Clearly, this elevated valuation directly reflects the current frenzy surrounding the AI infrastructure sector: as global tech giants race to build data centers amid intensifying competition for computing power, thermal management technology has become a critical physical bottleneck constraining AI advancement. Per Ecolab’s disclosures, CoolIT is projected to generate approximately USD 550 million in sales over the next 12 months, with an adjusted EBITDA margin of around 30%. This implies Ecolab paid more than 8.6x CoolIT’s annual sales—a company generating roughly USD 550 million in revenue. For comparison, Ecolab’s market capitalization stands at approximately USD 77.7 billion, with projected 2025 revenue of USD 16.08 billion—yielding a price-to-sales ratio of only ~4.8x. Post-acquisition, Ecolab’s total addressable market (TAM) will double—from USD 5 billion to USD 10 billion—with the market growing at double-digit annual rates. Ecolab expects the acquisition to lift organic sales growth for its global water business by two percentage points in Year 1, and overall organic sales growth by one percentage point. Starting in 2028 (excluding non-cash amortization expenses), the deal is projected to boost adjusted earnings per share. To finance the acquisition, Ecolab will raise new transaction debt. From gaming enthusiast to liquid-cooling leader Public records show CoolIT Systems was founded in 2001 and is headquartered in Calgary, Canada. Founders Brydon Gierl, Sandy Scott, and Jason Myers conceived the idea of revolutionizing computer cooling amid Calgary’s vibrant startup ecosystem. According to company history, Sandy—a passionate gamer—was frustrated by overheating graphics cards severely degrading his PC gaming experience. He approached Brydon for help, and the two began early experiments on a kitchen table to solve this pain point affecting high-performance computing users.

Deepening development in China and expanding presence in Pudong—multinational corporations accelerate localization.

Candela officially entered the Waigaoqiao New Exhibition City Industrial Community in 2022, launching its first laser technology innovation base in China. It has since continued to expand its industrial footprint in China: in 2024, it secured Shanghai’s first Class III medical device approval under Document No. 104—‘Import-to-Local Production’—enabling domestic manufacturing of its M22 photonic device. In 2026, Candela further broadened its breakthroughs, obtaining domestic registration approvals for two advanced laser devices—the Smart 532 green-light micropulse retinal laser and the carbon dioxide laser therapy system—successfully localizing production of these high-end ophthalmic and surgical lasers. This achievement not only breaks reliance on imported complete units but also completes Candela’s domestic product portfolio across high-end ophthalmology, surgery, and aesthetic medicine. During the localization process, Waigaoqiao actively coordinated with local authorities and industry regulators to establish multi-tiered communication channels for the company, providing professional policy interpretation and implementation guidance—forming an efficient government-enterprise collaboration model. Through special industrial policy support programs in Pudong, Waigaoqiao helped reduce the company’s overall operational costs. Regarding its localization strategy, the group plans for 50% of products sold in the Chinese market to be manufactured locally in Waigaoqiao—shortening delivery cycles, optimizing supply chains, lowering end-user procurement costs, and simultaneously upgrading China’s upstream and downstream laser medical device industry chain, supporting high-quality development of Shanghai’s advanced medical device manufacturing sector. At the end of last year, China’s Ministry of Commerce and other departments released the fourth batch of the Comprehensive Bonded Zone Repair Product Catalogue; within its scope, Candela has already obtained certification for three types of bonded repair services for complete units, and the first batch of goods awaiting repair has completed entry procedures into the zone. ‘By leveraging Waigaoqiao’s port advantages and open policies, we have established cross-border bonded repair channels for complete units across the Asia-Pacific region, forming a dual-driver business model combining domestic manufacturing of complete units and cross-border repair of complete units—evolving from previously offering only global component-level repairs to now delivering full-unit global repair services,’ said a relevant executive at Candela. ‘This model enables rapid response to both domestic and international market demands, achieving a closed-loop industrial chain spanning production and after-sales service.’ Accelerating the creation of an ‘innovation brain’ to empower global markets Similarly grounded in localization, Ecolab has continuously increased its investment in China in recent years, comprehensively strengthening its localized R&D, manufacturing, sales, and service systems. It has now built a fully integrated capability framework covering local innovation, R&D, manufacturing, and digitalization. During a recent visit to Ecolab’s Greater China R&D Center located in Pudong, reporters learned that—as Ecolab’s third-largest R&D center globally—the Greater China R&D Center has become both an ‘innovation breakthrough hub’ and a ‘technology incubator,’ having generated over 100 international invention patents to date. Meanwhile, Ecolab’s innovations developed in China are being exported to global markets.

Q&A: Ecolab Bets on Liquid Cooling for AI Data Center Growth

Oct 7, 2026

Ecolab acquired CoolIT Systems for $4.75 billion to provide liquid cooling solutions for AI data centers. The company aims to launch an integrated fluid technology platform by November 2026, focusing on sustainability and industry standards.

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