Apollo Funds Acquire Majority Stake in Kelvion, Global Heat Exchange Provider.

Apollo-managed funds are acquiring a majority stake in Kelvion, a global provider of energy-efficient heat exchange and cooling solutions. Triton will retain a minority interest in the company. Kelvion is a leading provider of thermal management solutions across various industrial and high-growth end markets, with a focus on advanced cooling technologies for data centers and enabling solutions for energy transition markets such as carbon capture and heat pumps.

Apollo (NYSE: APO) has announced that its managed funds will acquire a majority stake in Kelvion, a leading global provider of energy-efficient heat exchange and cooling solutions. The acquisition, which is expected to close between Q4 2025 and Q1 2026, subject to regulatory approvals, signifies Apollo's strategic expansion into high-growth sectors, particularly data centers, which is Kelvion's largest and fastest-growing segment.

Under Triton's ownership since 2014, Kelvion has undergone significant transformation, focusing on High Tech and Green Tech sectors. The company specializes in advanced cooling technologies for data centers, which represent its largest and fastest-growing segment. Kelvion also provides thermal management solutions for energy transition markets, including carbon capture, hydrogen, electrification, renewables, and heat pumps.

Apollo's acquisition of Kelvion aligns perfectly with its increasing focus on climate and energy transition investments. Over the past five years, Apollo-managed funds have committed approximately $58 billion to climate and energy transition-related investments. This acquisition exemplifies Apollo's strategy of investing in companies positioned at the forefront of major technological and environmental shifts, potentially providing attractive returns as these markets expand in the coming decades.

The transaction structure, with Triton maintaining a minority stake, suggests confidence in Kelvion's future prospects from both the seller and buyer. Triton's continued involvement provides valuable continuity, having overseen Kelvion's transformation since acquiring it in 2014.

For Apollo shareholders, this represents an expansion of the firm's portfolio in sectors with substantial long-term growth potential. Triton will retain a minority interest in Kelvion, ensuring continuity and valuable insights into the company's future prospects.

Kelvion's business profile is particularly attractive because it sits at the intersection of multiple secular growth trends. The company has successfully pivoted from traditional industrial applications toward what they term "High Tech and Green Tech" – specifically targeting data center cooling (critical for AI infrastructure), carbon capture, hydrogen, electrification, renewables, and heat pumps. This strategic positioning gives Apollo exposure to both the exponential growth in data center demand driven by AI and cloud computing, as well as the global energy transition.

Apollo Partners Claudia Scarico and Jeremy Honeth added, "We have followed the Kelvion business for several years, and Andy and the management team have done a terrific job transforming the business into a leading solutions provider serving highly technical end markets that we believe should continue to benefit from multiple secular megatrends. We are excited by its growth plans and look forward to supporting Kelvion in partnership with Triton."

Claus von Hermann, Fund Managing Partner, Head of DACH and Co-Head of Industrial Tech at Triton, said, "We thank Andy, the further management team and all employees of Kelvion for their hard work, commitment and collaboration over the years. Together, they have driven a remarkable transformation, positioning the company at the forefront of global industrial innovation. We believe that Apollo is the perfect new partner for the company providing avenues to new growth and we look forward to supporting both the management and Apollo team in that."

This acquisition exemplifies Apollo's strategy of investing in companies positioned at the forefront of major technological and environmental shifts, potentially providing attractive returns as these markets expand in the coming decades. For Apollo shareholders, this represents an expansion of the firm's portfolio in sectors with substantial long-term growth potential.

References:
[1] https://www.stocktitan.net/news/APO/apollo-funds-to-acquire-kelvion-a-leading-global-provider-of-heat-m6dsmguk7jpa.html