Key Takeaways
- • KKR and co-investor Mubadala sold Calgary-based CoolIT Systems to Ecolab for $4.75 billion, delivering a 15x return on their equity investment made in 2023 at an acquisition price of approximately $270–$300 million.
- • Approximately 600–650 CoolIT employees will receive cash bonuses averaging $240,000 upon deal closure, with individual payouts ranging from one to eight years of annual salary, marking KKR's first broad-based ownership payout in Canada and within its Global Impact strategy in North America.
- • CoolIT manufactures liquid cooling systems for data center infrastructure, with technologies deployed across 300+ global data centers; the company's systems deliver 30–40% greater energy efficiency than air cooling alternatives and saved an estimated 2.18 billion kWh of energy in 2025.
- • Since acquiring CoolIT in 2023 through its Global Impact Fund II, KKR achieved significant operational scaling: workforce doubled, manufacturing capacity expanded to 300,000+ square feet, coolant distribution capacity increased 25-fold, with targets of 4x revenue growth and 10x EBITDA growth by 2026.
- • The transaction is expected to close in Q3 2026 pending regulatory approvals, with CoolIT's CEO Jason Waxman and existing leadership remaining in place to operate the business under the CoolIT brand post-acquisition.
Summary
KKR announced the sale of CoolIT Systems to Ecolab for $4.75 billion, representing one of KKR's largest recent transactions and delivering an exceptional 15x return on the investment made in 2023. Abu Dhabi's sovereign wealth fund Mubadala served as a co-investor alongside KKR, which acquired the Calgary-based company through its Global Impact Fund II at an initial price of approximately $270–$300 million. The transaction exemplifies KKR's strategy of backing technology-enabled solutions addressing global infrastructure challenges, in this case the critical intersection of AI infrastructure scaling and energy efficiency.
CoolIT specializes in liquid cooling systems that support hyperscale data center operations in an era of accelerating artificial intelligence deployment. The company's proprietary technology reduces energy consumption by 30–40% compared to conventional air cooling systems and minimizes water usage. Since 2023, CoolIT's solutions have been deployed across more than 300 data centers globally, and the company's systems contributed to saving 2.18 billion kilowatt-hours of energy in 2025 alone. Under KKR's ownership, CoolIT achieved substantial operational expansion: workforce doubled, manufacturing footprint expanded beyond 300,000 square feet, coolant distribution capacity increased 25-fold, and management targets 4x revenue growth and 10x EBITDA growth by 2026.
The sale will trigger significant wealth distribution to the company's workforce. Approximately 600–650 employees—predominantly frontline workers—will receive cash bonuses averaging $240,000 each, with individual payouts representing between one and eight years of annual salary depending on position and tenure. This payout structure reflects KKR's broader commitment to broad-based employee equity participation; since 2011, 85 KKR portfolio companies have distributed billions in equity to over 190,000 non-senior management employees globally. The CoolIT transaction marks KKR's inaugural broad-based ownership payout in Canada and represents a first for the Global Impact Fund strategy in North America.
CEO Jason Waxman and CoolIT's existing leadership will continue to operate the business independently under the CoolIT brand following the close, ensuring continuity in strategy and execution. The transaction is scheduled to close in Q3 2026, subject to customary regulatory approvals.
CoolIT specializes in liquid cooling systems that support hyperscale data center operations in an era of accelerating artificial intelligence deployment. The company's proprietary technology reduces energy consumption by 30–40% compared to conventional air cooling systems and minimizes water usage. Since 2023, CoolIT's solutions have been deployed across more than 300 data centers globally, and the company's systems contributed to saving 2.18 billion kilowatt-hours of energy in 2025 alone. Under KKR's ownership, CoolIT achieved substantial operational expansion: workforce doubled, manufacturing footprint expanded beyond 300,000 square feet, coolant distribution capacity increased 25-fold, and management targets 4x revenue growth and 10x EBITDA growth by 2026.
The sale will trigger significant wealth distribution to the company's workforce. Approximately 600–650 employees—predominantly frontline workers—will receive cash bonuses averaging $240,000 each, with individual payouts representing between one and eight years of annual salary depending on position and tenure. This payout structure reflects KKR's broader commitment to broad-based employee equity participation; since 2011, 85 KKR portfolio companies have distributed billions in equity to over 190,000 non-senior management employees globally. The CoolIT transaction marks KKR's inaugural broad-based ownership payout in Canada and represents a first for the Global Impact Fund strategy in North America.
CEO Jason Waxman and CoolIT's existing leadership will continue to operate the business independently under the CoolIT brand following the close, ensuring continuity in strategy and execution. The transaction is scheduled to close in Q3 2026, subject to customary regulatory approvals.
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