Amsted Said to Weigh $6 Billion Sale of Cooling System Unit BAC

Amsted Industries is exploring a sale of cooling system provider Baltimore Aircoil Co., as strong demand for data center components pushes more owners to test the market, according to people familiar with the matter.

The industrial conglomerate is working with financial advisers to solicit acquisition interest in BAC, which could be valued at more than $6 billion in a transaction, the people said, asking not to be identified because the information is private.

Deliberations are early and Amsted could opt to retain the business, the people added. Representatives for Amsted and BAC didn’t immediately respond to requests for comment.

The sale process will test whether potential buyers, which could include HVAC as well as other industrial companies, are willing to make fresh bets that the data-center build-out will keep its strong momentum.

Companies, other than private equity firms, have been scooping up these high-growth assets in a wave of deals, with Eaton Corp. acquiring Boyd Thermal for $9.5 billion last year and Ecolab Inc. making a $4.75 billion purchase of CoolIT this year.

Founded in 1924 by a Russian immigrant, BAC serves a wide range of industries in addition to data centers with its cooling towers and other refrigeration technologies, including heavy industry, energy, commercial buildings and the food and beverages sectors, according to the company’s website. BAC has operations in North America, Europe and Asia, its website shows.