Vertiv to acquire Purge Rite from Milton Street Capital for $1B in cash

Vertiv (VRT) announced it has entered into an agreement to acquire Purge Rite from Milton Street Capital for approximately $1B in cash consideration at closing plus the potential additional consideration of up to $250M in cash based on achieving certain 2026 performance metrics. The acquisition, at approximately $1B purchase price, represents approximately 10.0x expected 2026 EBITDA including expected cost synergies. The expected EBITDA multiple is anticipated to be lower than 10.0x if the earn-out is paid. The acquisition is anticipated to be margin accretive to Vertiv’s Services business which operates above corporate average margins. Following the close of the transaction, PurgeRite’s services will join forces with Vertiv’s existing liquid cooling services offerings to deliver end-to-end thermal management solutions from facility to room and row to rack. PurgeRite is currently headquartered in Houston, Texas, with plans to expand its service center network across North America. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is expected to close in the fourth quarter of 2025.