Apollo Funds to Sell Data Center Cooling Firm Kelvion to SLB

SLB Ltd. agreed to acquire German cooling equipment maker Kelvion from investors including Apollo Global Management Inc. for $3.4 billion in cash to further push into data center services.

The world’s largest oil field service provider agreed to assume $700 million in debt as part of the deal that’s expected to close in the first half of 2027, SLB said in a statement Monday. Kelvion is majority owned by Apollo-managed funds, while funds advised by Triton hold a minority stake.

The Kelvion purchase will add to SLB’s data center solutions business. The Houston-based company’s fast-growing unit designs and supplies modular infrastructure for computing facilities as artificial intelligence drives a rapid build out in the US.

SLB shares rose 1.3% as of 7:52 a.m. in premarket trading in New York.

Read More: SLB To Buy Kelvion From Apollo for About $3.4b Cash: M&A Snapshot

Kelvion, the former heat exchanger unit of German machinery maker GEA Group AG, also supplies products for carbon capture and hydrogen production. Apollo had acquired the business from rival buyout firm Triton in January. The Triton vehicle that owned Kelvion went through a restructuring of its €600 million bonds in 2019, with Triton injecting new money to retain control, Bloomberg previously reported.

Guggenheim Securities LLC and USB AG advised Apollo Funds and Kelvion. Sidley Austin LLP was legal counsel while Paul, Weiss, Rifkind, Wharton LLP served as the regulatory counsel.