Ecolab has entered into a definitive agreement to acquire CoolIT Systems, a pure-play data center liquid cooling company focused on hyperscale and colocation operators and advanced AI workloads. Under the terms of the agreement, Ecolab will pay approximately $4.75 billion in cash at closing, subject to customary adjustments, representing 29x next-12-month and 24x 2027 estimated adjusted EBITDA for CoolIT. Using an indicative exchange rate of about 1 USD = 1.38 CAD at the time of publication, the consideration is approximately C$6.6 billion. CoolIT is expected to generate roughly $550 million (about C$760 million) in sales over the next 12 months. The acquisition will significantly expand Ecolab’s Global High-Tech market opportunity from $5 billion to $10 billion, is expected to accelerate Global Water’s organic sales growth by 2 percentage points and Ecolab’s total organic sales growth by 1 point, and should be accretive to adjusted diluted EPS (excluding non-cash amortization) beginning in 2028. The deal will be financed with new debt, with pro forma net debt to adjusted EBITDA anticipated around 3x at close and targeted to return to 2x by the end of the second year after closing. Closing is expected in the third quarter of 2026, subject to regulatory approvals and other customary conditions. Citi is serving as exclusive financial advisor to Ecolab, and Covington & Burling LLP is acting as legal counsel.