Blackstone and Advanced Cooling Technologies Inc. (ACT) announced that funds managed by Blackstone Energy Transition Partners have entered into a definitive agreement to acquire a majority stake in ACT, a US-based manufacturer of thermal management and energy efficiency solutions. ACT’s executive team will remain in place and continue as significant shareholders following the transaction.
Founded in 2003 and headquartered in Pennsylvania, ACT develops thermal management technologies used in advanced computing, high-power density and mission-critical applications. Its product portfolio includes two-phase liquid cooling systems, heat pipes, phase-change materials, cold plates, environmental control units and composite thermal systems.
Blackstone said the investment will support ACT’s expansion by increasing manufacturing capacity and strengthening engineering capabilities to meet growing customer demand.
Mark Zhu, Managing Director at Blackstone, said: “We believe ACT is well positioned for accelerated growth given the increasing importance of thermal management amid rising power intensity and AI innovation. This includes the company’s pioneering work helping meet the next generation of data center and high-performance chip cooling requirements. We are excited to partner with Jon and the entire ACT management team to support the company’s continued technological leadership and expansion of their manufacturing capacity amidst record customer demand.”
David Foley, Global Head of Blackstone Energy Transition Partners, added: “Our investment strategy focuses on identifying businesses we believe are well positioned to benefit from long-term power demand growth and the need to manage power and energy more efficiently. We have a long track record of partnering with founder-led companies, and we look forward to supporting Jon and the ACT team with capital and other resources as they continue to build on the company’s strong foundation in a rapidly growing market.”
ACT CEO and Co-Founder Jon Zuo said the partnership marks a new phase for the company. “Every one of us is excited about this new chapter of ACT. With the support of our Blackstone partners, we will continue driving our core values of Innovation, Teamwork, and Customer Care, with the goal of building ACT into the world’s leading thermal management company.”
The transaction is expected to close in the second quarter, subject to customary closing conditions.
Houlihan Lokey served as financial advisor and Reed Smith as legal counsel to ACT, while Kirkland & Ellis acted as legal advisor and UBS as financial advisor to Blackstone.
