Apollo agrees $4.1bn sale of Kelvion to SLB

Apollo-managed investment funds have reached a deal to sell thermal management specialist Kelvion to energy technology giant SLB for an estimated $4.1 billion. This includes $3.4 billion in cash and the assumption of about $700 million in debt. SLB will acquire 100% of Kelvion, while Apollo's funds, advised by Triton, will also sell their minority stake in the company.

The deal is expected to close in the first half of 2027, pending regulatory approvals and other customary conditions. Apollo took control of Kelvion in January 2026, expanding its ownership through its Infrastructure Group and Hybrid Value franchises. During this period, Apollo has bolstered the company's expansion, focusing on data-center cooling, which has become Kelvion's largest and fastest-growing segment.

Kelvion creates and manufactures thermal management systems for use in data centers, industrial applications, and energy infrastructure, enhancing the efficiency and reliability of cooling-intensive operations. Apollo's investment in Kelvion aligns with its strategy of deploying capital behind the infrastructure needs of the global expansion of artificial intelligence.

Waleed Elgohary, a partner at Apollo, highlighted that the firm provided Kelvion's management team with the necessary capital and strategic support to capitalize on its highest-growth opportunities, especially in energy-efficiency technologies related to AI infrastructure. Upon SLB's acquisition, Kelvion will be merged with SLB's existing data-center solutions business.

SLB anticipates that this acquisition will bolster its position in data-center infrastructure and expand its thermal management capabilities. SLB's data-center solutions segment has grown rapidly over the past three years and aims to deliver more than 2GW globally by the end of 2026. The acquisition is part of SLB's broader strategy to capture a larger share of the infrastructure investment driven by AI.

SLB believes adding Kelvion's thermal management technology will more than double its potential revenue per gigawatt of delivered data-center capacity. For Apollo, the transaction represents an early return on an investment made early this year, showcasing the firm's ability to invest in businesses benefiting from infrastructure trends and attract strategic buyers interested in those markets.

Apollo stated that its funds have deployed over $155 billion across infrastructure and infrastructure-related investments over the past five years. Kelvion's CEO, Andy Blandford, will remain in his role following the transaction, stating that the company has established strong positions in both data centers and diversified industrial markets during its ownership by Apollo and Triton.

The sale comes as there is heightened interest from investors and corporations in the infrastructure supporting AI computing, with cooling systems becoming increasingly critical as data centers manage rising power densities and thermal loads. The transaction is subject to regulatory clearance and other closing conditions and is anticipated to be finalized in the first half of 2027.