Key Takeaways
- • Blackstone has agreed to acquire Flow Control Holdings (FCH) from Audax Private Equity, with Audax retaining a minority equity stake in the engineered components manufacturer as part of a sponsor continuation deal.
- • FCH specializes in highly engineered liquid cooling components for data centers, including coolant distribution units (CDUs), in-row manifolds, and secondary fluid networks (SFN), serving hyperscalers and original equipment manufacturers (OEMs) in the AI infrastructure sector.
- • The acquisition positions Blackstone to capitalize on accelerating demand for liquid cooling technology driven by next-generation AI infrastructure requirements, which offer superior energy efficiency and reduced CO2 emissions compared to air cooling systems.
- • Blackstone Capital Partners and Blackstone Energy Transition Partners are jointly acquiring the majority stake, with Cincinnati-based FCH maintaining operations across data center, food, beverage, and pharmaceutical markets.
- • William Blair served as financial advisor to Blackstone on the transaction, which was announced September 10, 2026.
Summary
Blackstone has secured a definitive agreement to acquire Flow Control Holdings from Audax Private Equity, marking a significant sponsor continuation transaction in the engineered components sector. Under the deal structure, Audax will maintain a minority equity position in FCH while Blackstone Capital Partners and Blackstone Energy Transition Partners jointly acquire the majority stake. Both Audax and management will continue partnering with Blackstone to support the company's growth trajectory.
FCH, headquartered in Cincinnati, Ohio, manufactures highly engineered, high-performance flow control solutions and components serving multiple end markets. The company's primary focus is liquid cooling infrastructure for data centers, where it supplies coolant distribution units, in-row manifolds, and secondary fluid networks to hyperscalers and original equipment manufacturers. Beyond data centers, FCH maintains operations in food, beverage, and pharmaceutical industries, leveraging its core engineering and manufacturing capabilities across diversified applications.
The acquisition reflects Blackstone's strategic positioning around the acceleration of liquid cooling adoption in AI and high-performance computing infrastructure. According to Bilal Khan, Senior Managing Director, and Mark Zhu, Managing Director, at Blackstone, "FCH has enormous tailwinds for continued growth as the latest generations of high-performance AI infrastructure increasingly rely on liquid cooling technology for significantly improved energy and chip efficiency." Liquid cooling systems deliver materially superior energy efficiency relative to traditional air cooling methods, enabling data center operators to reduce power usage effectiveness and carbon emissions while supporting next-generation compute workloads.
FCH has established deep customer relationships across demanding workload segments, positioning the company as a trusted supplier for mission-critical applications. The combination with Blackstone's capital, operational expertise, and energy transition focus provides infrastructure for accelerated growth in a market experiencing structural tailwinds from AI infrastructure buildout and data center decarbonization initiatives. William Blair acted as financial advisor to Blackstone in connection with the transaction.
FCH, headquartered in Cincinnati, Ohio, manufactures highly engineered, high-performance flow control solutions and components serving multiple end markets. The company's primary focus is liquid cooling infrastructure for data centers, where it supplies coolant distribution units, in-row manifolds, and secondary fluid networks to hyperscalers and original equipment manufacturers. Beyond data centers, FCH maintains operations in food, beverage, and pharmaceutical industries, leveraging its core engineering and manufacturing capabilities across diversified applications.
The acquisition reflects Blackstone's strategic positioning around the acceleration of liquid cooling adoption in AI and high-performance computing infrastructure. According to Bilal Khan, Senior Managing Director, and Mark Zhu, Managing Director, at Blackstone, "FCH has enormous tailwinds for continued growth as the latest generations of high-performance AI infrastructure increasingly rely on liquid cooling technology for significantly improved energy and chip efficiency." Liquid cooling systems deliver materially superior energy efficiency relative to traditional air cooling methods, enabling data center operators to reduce power usage effectiveness and carbon emissions while supporting next-generation compute workloads.
FCH has established deep customer relationships across demanding workload segments, positioning the company as a trusted supplier for mission-critical applications. The combination with Blackstone's capital, operational expertise, and energy transition focus provides infrastructure for accelerated growth in a market experiencing structural tailwinds from AI infrastructure buildout and data center decarbonization initiatives. William Blair acted as financial advisor to Blackstone in connection with the transaction.
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