LANCASTER, PA — Blackstone (NYSE: BX) has agreed to acquire a majority stake in Advanced Cooling Technologies Inc. through its Energy Transition Partners funds to expand capabilities in thermal management and energy efficiency, the companies announced.
The transaction, which is subject to customary closing conditions, is expected to close in the second quarter, according to the announcement.
Advanced Cooling Technologies, founded in 2003 and based in Pennsylvania, designs and manufactures thermal management systems used in applications including data centers, electronics, defense, and energy.
Blackstone said the investment is intended to support the company’s growth and expand its manufacturing capacity as demand increases for cooling technologies tied to high-performance computing and artificial intelligence.
“We believe ACT is well positioned for accelerated growth given the increasing importance of thermal management amid rising power intensity and AI innovation,” said Mark Zhu, managing director at Blackstone.
ACT’s executive team will remain in place and retain significant ownership in the company, the firms said.
“Our investment strategy focuses on identifying businesses… positioned to benefit from long-term power demand growth and the need to manage power and energy more efficiently,” said David Foley, global head of Blackstone Energy Transition Partners.
Jon Zuo, chief executive officer and co-founder of ACT, said the partnership is expected to support the company’s expansion.
“With the support of our Blackstone partners, we will continue… building ACT into the world’s leading thermal management company,” Zuo said.
Houlihan Lokey served as financial advisor to ACT, while UBS advised Blackstone. Reed Smith and Kirkland & Ellis provided legal counsel to the respective parties, according to the announcement.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.