Key Takeaways
- • Blackstone has signed a definitive agreement to acquire Flow Control Holdings (FCH), a Cincinnati-based provider of engineered flow-control components for data centre liquid cooling systems, from Audax Private Equity, with closing expected in Q4 2026.
- • Blackstone Capital Partners and Blackstone Energy Transition Partners are partnering on the acquisition; Audax will retain a minority stake and continue involvement post-close, while financial terms remain undisclosed.
- • FCH supplies critical components including coolant distribution units, in-row manifolds, and secondary fluid networks to original equipment manufacturers and hyperscalers as data centres increasingly adopt liquid-cooling technology to manage rising power and heat demands from high-performance chips.
- • The transaction represents Blackstone's continued strategic expansion into AI infrastructure-adjacent assets, leveraging Blackstone Energy Transition Partners' $30 billion global equity commitment to energy transition and control-oriented infrastructure investments.
- • Advisory teams included Houlihan Lokey, Jefferies, and Ropes & Gray for FCH; William Blair, UBS, and Goldman Sachs for Blackstone, with Kirkland & Ellis providing legal counsel to the acquirer.
Summary
Blackstone has agreed to acquire Flow Control Holdings from Audax Private Equity in a transaction positioned to close during the fourth quarter of 2026. The deal pairs Blackstone Capital Partners with Blackstone Energy Transition Partners, the firm's dedicated energy transition investment vehicle, signaling a coordinated approach to capturing exposure in infrastructure critical to AI computing expansion. Audax will maintain a minority ownership stake and remain actively involved in the business alongside Blackstone and FCH management following completion. The parties have not disclosed financial terms for the transaction.
Flow Control Holdings, based in Cincinnati, Ohio, manufactures engineered flow-control components essential to liquid-cooling systems increasingly deployed across data centre infrastructure. The company supplies original equipment manufacturers and hyperscalers with coolant distribution units, in-row manifolds, and secondary fluid networks designed to address the thermal management challenges posed by next-generation chips and intensifying computational workloads. As data centre operators pursue liquid-cooling solutions to manage rising power consumption and heat dissipation requirements, FCH's product portfolio has become strategically valuable to the broader ecosystem supporting AI infrastructure development.
For Blackstone, the acquisition extends its portfolio of physical infrastructure assets underpinning AI computing expansion. The firm's broader investment platform spans private equity, infrastructure, credit, and alternative strategies, while Blackstone Energy Transition Partners maintains approximately $30 billion in committed global equity capital focused on control-oriented investments across the energy transition sector. By acquiring FCH, Blackstone positions itself to capture upside from accelerating demand for thermal management solutions as AI workloads and data centre capital expenditure continue their upward trajectory. The firm has explicitly committed to supporting FCH's capacity expansion to meet this anticipated growth.
The transaction was advised by multiple leading financial institutions. Houlihan Lokey and Jefferies acted as financial advisors to FCH, with Ropes & Gray providing legal counsel. Blackstone retained William Blair, UBS, and Goldman Sachs as financial advisors, while Kirkland & Ellis served as legal counsel to the acquirer.
Flow Control Holdings, based in Cincinnati, Ohio, manufactures engineered flow-control components essential to liquid-cooling systems increasingly deployed across data centre infrastructure. The company supplies original equipment manufacturers and hyperscalers with coolant distribution units, in-row manifolds, and secondary fluid networks designed to address the thermal management challenges posed by next-generation chips and intensifying computational workloads. As data centre operators pursue liquid-cooling solutions to manage rising power consumption and heat dissipation requirements, FCH's product portfolio has become strategically valuable to the broader ecosystem supporting AI infrastructure development.
For Blackstone, the acquisition extends its portfolio of physical infrastructure assets underpinning AI computing expansion. The firm's broader investment platform spans private equity, infrastructure, credit, and alternative strategies, while Blackstone Energy Transition Partners maintains approximately $30 billion in committed global equity capital focused on control-oriented investments across the energy transition sector. By acquiring FCH, Blackstone positions itself to capture upside from accelerating demand for thermal management solutions as AI workloads and data centre capital expenditure continue their upward trajectory. The firm has explicitly committed to supporting FCH's capacity expansion to meet this anticipated growth.
The transaction was advised by multiple leading financial institutions. Houlihan Lokey and Jefferies acted as financial advisors to FCH, with Ropes & Gray providing legal counsel. Blackstone retained William Blair, UBS, and Goldman Sachs as financial advisors, while Kirkland & Ellis served as legal counsel to the acquirer.
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