KKR (NYSE: KKR) announced it has entered into a definitive agreement to sell CoolIT Systems, a liquid data center cooling company, to Ecolab for $4.75 billion. The transaction represents approximately a 15x return on KKR's original equity investment.

All 650 CoolIT employees will receive cash payouts ranging from approximately one year of annual pay to over eight years of annual pay as part of a broad-based ownership program implemented when KKR acquired the company in 2023. This marks KKR's first broad-based ownership program payout in Canada.

CoolIT, based in Calgary, Alberta, designs and manufactures liquid cooling systems for data centers. The company's technology reduces energy consumption for cooling by 30-40% compared to traditional air-cooled systems and operates in more than 300 data centers globally.

Since KKR's acquisition through its Global Impact Fund II in 2023, CoolIT has doubled its workforce to 650 employees, expanded manufacturing capacity by 25x, and projects approximately 4x revenue growth and 10x EBITDA growth through 2026. The company estimates its solutions delivered 2.18 billion kWh in energy savings in 2025.

Mubadala Investment Company served as a co-investor alongside KKR in the transaction. CoolIT's leadership team, led by CEO Jason Waxman, is expected to remain in place following the sale.

The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2026, according to the press release statement.