SLB to Acquire Cooling Equipment Maker Kelvion for $3.4 Billion

en.Wedoany.com Reported - On August 31, SLB signed a definitive agreement to acquire 100% of Kelvion, a German manufacturer of thermal management and heat exchange equipment. SLB will pay approximately $3.4 billion in cash to funds managed by Apollo and funds advised by Triton, while assuming approximately $700 million of Kelvion's debt, bringing the total transaction value to approximately $4.1 billion. The transaction remains subject to customary closing conditions and regulatory approvals, and is expected to close in the first half of 2027.

Kelvion is currently majority-owned by funds managed by Apollo, with funds affiliated with Triton holding a minority stake. Apollo reached an agreement to acquire a majority stake in Kelvion in August 2025 and completed the investment in January 2026. Upon completion of this sale, all Kelvion interests held by both parties will be transferred to SLB.

Kelvion primarily provides thermal management, heat exchange, and cooling equipment, serving data centers, heat pumps, renewable energy, carbon capture, and industrial processing facilities. SLB expects Kelvion to generate revenue of approximately $2.3 billion to $2.4 billion in 2026, with adjusted EBITDA of approximately $350 million to $400 million. Data centers have become its largest business segment, with related revenue expected to reach $1.2 billion to $1.3 billion in 2026. Kelvion's data center products include heat exchange and cooling systems, with its existing customer base primarily concentrated in Europe and the United States.

SLB's existing data center business includes engineering design, modular manufacturing, offsite construction, and system integration. The company expects this business to achieve a compound annual growth rate of over 90% in revenue from 2024 to 2026, with cumulative delivered data center capacity exceeding 2GW by the end of 2026. Following the integration of Kelvion, SLB expects combined pro forma data center revenue of over $2 billion in 2026, with adjusted EBITDA of approximately $300 million.

Under the transaction arrangement, SLB expects to generate approximately $120 million in annual EBITDA synergies within three years after closing, with approximately $70 million derived from cost savings and the remainder from incremental revenue. The company plans to further introduce Kelvion's existing cooling products into Asian and Middle Eastern markets and expects the acquisition to more than double its revenue opportunity per gigawatt of delivered data center capacity.

SLB has set a 2028 revenue target of $4.5 billion to $5 billion for its combined data center solutions business, with an adjusted EBITDA target of $700 million to $800 million. The transaction represents a multiple of approximately 11 times Kelvion's expected 2026 EBITDA; after accounting for anticipated annual synergies, the multiple is approximately 8.5 times.