Blackstone has signed a definitive agreement to acquire Flow Control Holdings (FCH) from Audax Private Equity, with Audax retaining a minority stake and continuing to work with Blackstone and FCH’s management after completion, according to Private Equity Wire. Financial terms were not disclosed, and the transaction is expected to close in Q4, according to Private Equity Wire.
Buyer syndicate and seller rollover
Private equity funds affiliated with Blackstone Capital Partners and Blackstone Energy Transition Partners signed the definitive agreement to acquire FCH, according to Private Equity Wire. Audax will retain a minority stake in the business following completion, according to Private Equity Wire. Audax will continue to work with Blackstone and FCH’s management following completion, according to Private Equity Wire.
Business profile and end markets
FCH is a US provider of engineered flow-control components used in data centre liquid cooling and other critical applications, according to Private Equity Wire. FCH is based in Cincinnati, Ohio, and supplies components used by original equipment manufacturers and hyperscalers in coolant distribution units, in-row manifolds and secondary fluid networks, according to Private Equity Wire. FCH’s products are designed for liquid-cooling systems, which are increasingly being adopted as data centres deploy higher-performance chips and seek to manage rising power and heat requirements, according to Private Equity Wire.
Blackstone’s stated plan and platform fit
Blackstone said it plans to support FCH’s capacity expansion as demand for liquid-cooling technology increases alongside investment in AI infrastructure, according to Private Equity Wire. The acquisition adds another asset to Blackstone’s portfolio linked to the physical infrastructure required to support the expansion of AI computing, according to Private Equity Wire. Blackstone’s broader investment platform spans private equity, infrastructure, credit and other alternative strategies, according to Private Equity Wire. Blackstone Energy Transition Partners focuses on control-oriented investments in energy-related businesses, according to Private Equity Wire. Blackstone Energy Transition Partners has committed approximately $30bn of equity globally across the energy transition sector, according to the firm as cited by Private Equity Wire.
Advisers
Houlihan Lokey and Jefferies advised FCH, with Ropes & Gray providing legal counsel, according to Private Equity Wire. William Blair, UBS and Goldman Sachs advised Blackstone, while Kirkland & Ellis acted as legal counsel, according to Private Equity Wire.
