The veteran Fortune 500 CEO who turned an 80-year-old AC company into an AI darling
First Dave Cote transformed Honeywell. Then out of retirement he placed a stunning bet on a little known company called Vertiv.
Vertiv, an 80-year-old AC manufacturer, has dramatically transformed from an overlooked industrial company into a leading player in the AI industry. Since going public in early 2021, its market cap has surged nearly tenfold, from under $11 billion to $109 billion, with an annualized return of 50.5% during the six-and-a-half year period, placing it third among S&P 500 companies.
The driving force behind this extraordinary turnaround is David Cote, a retired industrialist who previously led Honeywell to a spectacular revival. Cote, who had retired from Honeywell, was searching for a new challenge and, through an arrangement with Goldman Sachs, was presented with a list of acquisition candidates. Among these, Vertiv stood out as a promising opportunity with its innovative cooling technology for data centers, crucial for the rapid growth of AI.
Under Cote's leadership, Vertiv pivoted to become a provider of this revolutionary technology, positioning itself as an indispensable part of the digital age.
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