CALGARY — In an unprecedented move, employees of CoolIT Systems, a Canadian liquid cooling technology company, were awarded an average of $240,000 each after private equity giant KKR sold the company to Ecolab for $4.75 billion. The payout, which was part of KKR’s employee equity program, rewarded workers ranging from engineers to security guards, many of whom had never anticipated such a windfall.
A Transformation Under KKR
CoolIT, founded 25 years ago as a niche provider of liquid cooling for gaming computers, underwent a dramatic transformation under KKR’s ownership. The firm pivoted to serve the booming AI industry, securing contracts with major tech companies like Nvidia. This shift led to a 300% revenue increase over three years, with production capacity expanding 30-fold.
'I thought KKR would help us grow, but nothing like the explosion we’ve seen in the past three years,' said Nga Morris, a supervisor at CoolIT.
Employee Ownership Pays Off
KKR’s employee equity program, initiated at the time of acquisition, ensured that every CoolIT employee received a share of the company’s success. Payments were calculated based on annual salary and tenure, with long-term employees seeing the largest rewards. The announcement came during a Town Hall meeting held under a tent in Calgary, where stunned workers learned the details of their payouts.
'We had a lot of excitement, but I didn’t expect anything life-changing,' said Kenny Kong, a quality control analyst who joined CoolIT in 2011. 'This is beyond anything I imagined.'
The sale underscores the potential of employee ownership models to deliver significant financial rewards, particularly in industries experiencing rapid growth. For CoolIT workers, the payouts represent not just a financial windfall but a validation of their contributions to the company’s success.