KKR Sells CoolIT for $4.75 Billion, Achieving 15x Return
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy KKR?
Source: Newsfilter
- Significant Transaction Size: KKR has entered into a definitive agreement to sell CoolIT to Ecolab for $4.75 billion, which is expected to yield approximately 15x return on investment, marking one of KKR's largest realizations and showcasing its successful investment strategy in the liquid cooling market.
- Employee Payouts: All 650 CoolIT employees will receive substantial cash payouts ranging from approximately one year to over eight years of annual pay, reflecting KKR's commitment to employee ownership programs and enhancing employee engagement and motivation.
- Energy Efficiency Gains: CoolIT's liquid cooling systems can reduce energy consumption by 30-40% compared to traditional air-cooled data centers, with an estimated 2.18 billion kWh in energy savings projected by 2025, enough to power around 200,000 homes, highlighting its contribution to sustainability.
- Future Growth Potential: With KKR's support, CoolIT is positioned to achieve approximately 4x revenue growth and 10x EBITDA growth by 2026, indicating strong growth potential in the high-density AI infrastructure market and further solidifying its leadership position.
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Analyst Views on KKR
Wall Street analysts forecast KKR stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 88.500
Low
145.00
Averages
159.67
High
176.00
Current: 88.500
Low
145.00
Averages
159.67
High
176.00
About KKR
KKR & Co. Inc. is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. The Company’s segments include Asset Management, Insurance and Strategic Holdings. Asset Management segment offers a range of investment management services to investment funds, vehicles and accounts and provides capital markets services to portfolio companies and third parties. Asset Management segment includes five business lines: Private Equity, Real Assets, Credit and Liquid Strategies, Capital Markets and Principal Activities. Insurance segment is operated by Global Atlantic, which is a United States retirement and life insurance company that provides a suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic offers individuals fixed-rate annuities and others. Strategic Holdings segment represents its participation in its core private equity strategy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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