Private investment major Blackstone is to acquire Flow Control Holdings (FCH), a US provider of engineered flow-control components used in data centre liquid cooling and other critical applications, from Audax Private Equity.
Private equity funds affiliated with Blackstone Capital Partners and Blackstone Energy Transition Partners have signed a definitive agreement to acquire FCH. Audax will retain a minority stake in the business and continue to work with Blackstone and FCH’s management following completion.
Financial terms of the transaction, which is expected to close in Q4, have not been disclosed.
Based in Cincinnati, Ohio, FCH supplies components used by original equipment manufacturers and hyperscalers in coolant distribution units, in-row manifolds and secondary fluid networks. Its 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.
Blackstone said it plans to support FCH’s capacity expansion as demand for liquid-cooling technology increases alongside investment in AI infrastructure.
The acquisition adds another asset to Blackstone’s portfolio linked to the physical infrastructure required to support the expansion of AI computing. The firm’s broader investment platform spans private equity, infrastructure, credit and other alternative strategies, while Blackstone Energy Transition Partners focuses on control-oriented investments in energy-related businesses.
Blackstone Energy Transition Partners has committed approximately $30bn of equity globally across the energy transition sector, according to the firm.
Houlihan Lokey and Jefferies advised FCH, with Ropes & Gray providing legal counsel. William Blair, UBS and Goldman Sachs advised Blackstone, while Kirkland & Ellis acted as legal counsel.
