Blackstone has agreed to acquire Flow Control Holdings (FCH), a US-based supplier of liquid-cooling components for data centres, from Audax Private Equity.
The transaction involves private equity funds affiliated with Blackstone Capital Partners and Blackstone Energy Transition Partners.
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The acquisition will see Audax Private Equity, the current owner, retain a minority equity interest in FCH while continuing to work with Blackstone and company management.
Based in Cincinnati, Ohio, FCH manufactures critical liquid cooling components intended for use by original equipment manufacturers (OEM) and hyperscale data centre operators.
Its products support coolant distribution units, in-row manifolds, and secondary fluid networks, all of which are key to the implementation of liquid cooling systems.
Such systems are regarded as more energy efficient than traditional air-cooling methods in data centres, offering measurable reductions in CO2 emissions and improvements in power usage effectiveness.
FCH CEO Scott Kerns said: “We’re thrilled to partner with Blackstone as we enter our next chapter of growth. Over the past four years, we’ve invested significantly to develop a leading position in the data centre cooling market supporting our OEM customers and hyperscalers.”
Audax private equity partner Don Bramley said: “We believe the sale of FCH represents a tremendous outcome for the incredibly dedicated and talented team at FCH as well as our investors. Scott and the entire team have been outstanding partners in building FCH as a leader in the data centre cooling market.
“We view the FCH investment as a text-book example of Audax’s ability to build strategic assets through disciplined execution of the Audax Value Agenda and Buy & Build approach. We look forward to partnering with Blackstone and continuing to support FCH in its next chapter of growth.”
Financial details of the transaction have not been disclosed. Blackstone expects the acquisition to close during the fourth quarter, subject to customary approvals.
Several financial and legal advisors worked with both parties on the deal.
In July this year, QTS, owned by Blackstone, terminated its plans to build the Digital Gateway data centre project in Prince William County, Virginia.
