SLB to Acquire Kelvion from Apollo Funds for $3.4 Billion

Energy services company SLB has announced that it has signed an agreement to acquire Kelvion, a provider of industrial cooling and heat transfer solutions, from funds managed by Apollo Global Management for approximately $3.4 billion in cash. The acquisition is seen as part of SLB's strategy to expand its portfolio in the energy and industrial sectors. Kelvion specializes in heat exchangers and cooling systems used in critical areas such as data centers, power generation, and industrial processes. SLB's management stated that the acquisition will contribute to the company's growth goals focused on energy transition and digitalization, and will enable it to offer customers a broader range of products. The deal is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. SLB has announced plans to finance the transaction using existing cash resources and new debt instruments. The company also stated that Kelvion's existing management team and operations will be retained following the acquisition. This strategic move is interpreted as a sign of SLB's efforts to transform into a broader energy and industrial technology company, going beyond traditional oil and gas services. Kelvion's strong market position and technological capabilities are seen as key elements that will support SLB's growth strategy. This is not investment advice.