Apollo Funds Agree to Sell Kelvion to SLB for $4.1 Billion

Apollo Global Management (N7I.DE ) announced on August 31, 2026 that SLB has entered into a definitive agreement to acquire 100% of Kelvion, a global developer and manufacturer of thermal management solutions, for approximately $3.4 billion in cash plus the assumption of approximately $0.7 billion of debt. Kelvion is majority owned by Apollo-managed funds; funds advised by Triton hold a minority interest that SLB will also acquire.

The total transaction value of approximately $4.1 billion represents approximately 11 times estimated 2026 EBITDA before synergies, or approximately 8.5 times EBITDA including expected annual run-rate synergies, according to SLB’s news release filed with the U.S. Securities and Exchange Commission.

Transaction Terms and Expected Financial Impact

SLB expects the transaction to be accretive to both earnings per share and free cash flow per share in the first 12 months following closing. The company also expects to generate approximately $120 million in annual EBITDA synergies within three years, from cost efficiencies and incremental revenue opportunities.

Following the transaction, SLB stated it will retain a strong investment-grade balance sheet, with its net debt-to-EBITDA ratio remaining within its previously stated through-cycle target of up to 1.5 times. The company also reaffirmed its commitment to return more than $4 billion to shareholders in 2026 through dividends and share repurchases, and said it expects total shareholder returns in 2027 to be at least in line with 2026 levels, with formal 2027 targets to be finalized as part of its annual planning process.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027.

Kelvion’s Business and Apollo’s Ownership

Kelvion is a leading global developer and manufacturer of thermal solutions serving data centers and diversified industrials. Apollo described the company as a global leader in advanced cooling solutions for customers across a broad spectrum of industrial and energy infrastructure end-markets. With the support of the Apollo Infrastructure Group and Apollo’s Hybrid Value franchise, Kelvion has grown its global team and increased its strategic focus and investment in serving data centers, which represent its largest and fastest-growing segment.

SLB stated that Kelvion is expected to generate 2026 revenue of approximately $2.3 billion to $2.4 billion and adjusted EBITDA of approximately $350 million to $400 million. Data center revenue is expected to reach between $1.2 billion and $1.3 billion in 2026, according to SLB. Beyond data centers, Kelvion holds established positions in energy and industrial markets including heat pumps, renewables, and carbon capture and processing.

The Apollo Funds’ investment in Kelvion completed in January 2026. Apollo-managed funds had agreed in August 2025 to acquire a majority stake in Kelvion from funds advised by Triton, which retained a minority interest. Triton acquired and rebranded the company in 2014; it was formerly the GEA Heat Exchanger Group. Apollo stated that its funds have deployed more than $155 billion across infrastructure and infrastructure-related investments over the past five years, measured under its proprietary Infrastructure Investment Classification Framework and Calculation Methodology.

“From the outset, our focus was on giving Kelvion management the resources and strategic support to pursue the Company’s most compelling growth opportunities, chief among them bringing energy efficiency solutions to the AI buildout,” said Waleed Elgohary, Partner at Apollo. He added that management has executed its strategic plans and that the parties believe long-term growth will accelerate as part of SLB.

Kelvion CEO Andy Blandford called the agreement a significant milestone, thanking Apollo Funds, Triton, and the company’s customers, and said Kelvion holds leading positions in both data centers and diversified industrials.

SLB’s Data Center Expansion Plans

SLB said the acquisition strengthens its Data Center Solutions business with critical thermal management technologies. SLB’s data center solutions business has grown rapidly over the past three years and expects cumulative deliveries to exceed 2 gigawatts globally by year-end, according to the Apollo release. SLB’s own release states that the business’s revenue is expected to increase at a compound annual growth rate exceeding 90 percent between 2024 and 2026, and that its modular approach can reduce onsite construction complexity and accelerate time to operation by up to 40%.

Together, SLB and Kelvion are expected to generate more than $2 billion in data center revenue and approximately $300 million in adjusted EBITDA on a pro-forma basis in 2026, according to SLB. The company is targeting revenue of $4.5 billion to $5 billion and adjusted EBITDA of $700 million to $800 million for its combined data center solutions business in 2028.

“AI is driving the most significant infrastructure investment cycle in our lifetime,” said Olivier Le Peuch, chief executive officer of SLB. “This transaction accelerates our ambition to become an industrial technology partner to the data center industry and help customers address the growing infrastructure complexity required to scale AI.”

Gavin Rennick, president of SLB’s New Energy and Industrial business, said the acquisition allows SLB to deliver more integrated cooling solutions and embed thermal management more directly into its modular infrastructure offering.

Guggenheim Securities, LLC acted as lead financial advisor to the Apollo Funds and Kelvion, with UBS AG London Branch also serving as financial advisor. Sidley Austin LLP served as legal counsel on the transaction, and Paul, Weiss, Rifkind, Wharton LLP served as regulatory counsel.

SLB filed a current report on Form 8-K with the SEC on August 31, 2026, furnishing the press release under Item 7.01. The company also scheduled a public conference call for 10:00 a.m. U.S. Eastern time on August 31, 2026, to discuss the announcement. Apollo, a global alternative asset manager that operates the Athene retirement services business, reported approximately $1.05 trillion of assets under management as of June 30, 2026.