Vertiv Holdings Co, a global company in digital infrastructure, announced an agreement to acquire Purge Rite Intermediate, LLC (“PurgeRite”). PurgeRite is a leading company that provides cleaning and filtration services for data centers and other major facilities.
Vertiv will acquire PurgeRite from Milton Street Capital LLC for about $1 billion in cash. There is also a chance for an additional $250 million payment if PurgeRite meets certain business goals in 2026.
The purchase price of about $1 billion is about 10 times what PurgeRite is expected to earn before interest, taxes, depreciation, and amortization (EBITDA) in 2026, including savings from working together. If the extra payment is made, the price compared to earnings will be a bit lower. This deal is expected to increase Vertiv’s profit margins. PurgeRite will help Vertiv improve its cooling services and make Vertiv even stronger as a leader in advanced cooling systems for liquid cooling, including those used in artificial intelligence (AI) data centers.
PurgeRite brings engineering expertise, its own technologies, and the ability to handle busy data center schedules. This makes it possible for PurgeRite to provide complex cooling solutions from chillers to coolant distribution units (CDUs). PurgeRite is well known in the industry for its cleaning and filtration services for important data centers, and it works with many large technology companies and colocation providers.
“This acquisition is a major step for Vertiv to improve our fluid management services, from planning to maintenance,” said Gio Albertazzi, CEO at Vertiv. “PurgeRite’s special services and engineering skills will add to what we already offer and help us support high-powered computers and AI, where good cooling is important for reliable performance. This deal fits with our goal to invest in companies that help us grow as a leader in digital infrastructure.”
PurgeRite’s main office is in Houston, Texas, and the company plans to open more service centers in North America.
Stifel is the only financial advisor for Vertiv, and Buchanan, Ingersoll & Rooney PC provided legal advice. Harris Williams advised PurgeRite, and DLA Piper LLP (US) gave legal advice.
This deal needs to meet standard requirements, including approvals from government regulators under the Hart-Scott-Rodino Act of 1976. The purchase is expected to finish in the last part of 2025.
For more about Vertiv’s products, visit Vertiv.com.
