Mentioned:BlackstoneFlow Control HoldingsAudax Private Equity
Blackstone has agreed to acquire Flow Control Holdings, a maker of stainless-steel fittings, valves, hoses and fabricated assemblies, from Audax Private Equity. Audax will retain a minority equity stake in the business.
What's happening
- Blackstone acquired Flow Control Holdings, which manufactures precision stainless-steel fittings, valves, strainers, coolant hoses and custom fabricated assemblies for data center cooling and industrial applications.
- FCH operates through four divisions: Steel & O'Brien, Ace Sanitary, Strahman Group and a dedicated Data Cooling division built during Audax's 4-year ownership starting April 2022.
- Audax expanded FCH from a sanitary fittings supplier to dairies and pharma plants by acquiring 10 businesses between 2022 and 2025 and launching the data center cooling division.
- FCH makes components at nearly every step of liquid-cooled data center systems, where chilled liquid absorbs heat from server processors and flows through a cooling cycle.
Why it matters
- Liquid cooling is becoming critical for AI infrastructure efficiency, creating industrial demand for precision components that FCH is positioned to supply at scale.
- Blackstone's acquisition consolidates a fragmented supply base for data center cooling hardware, reducing single-source risk for hyperscale operators and equipment makers.
- FCH's diversified customer base spans data centers, food and beverage plants and pharmaceutical manufacturers, reducing exposure to any single end market.
Going deeper
- In a liquid-cooled system, chilled liquid is pumped to server racks, absorbs heat from processors, then flows back to a cooling unit that removes the heat and returns it to the building's system.
- FCH acquired Precision Stainless in May 2025 and Gemco Valve in August 2025, continuing tuck-in consolidation before the Blackstone transaction closed in September 2026.
- CEO Scott Kerns leads FCH from Cincinnati, Ohio, with headquarters that anchors operations across New York, Pennsylvania, Ohio, South Carolina, New Jersey, Texas, Minnesota and California.
The intrigue
- Audax built a data center cooling division from a sanitary fittings base in just 4 years, suggesting rapid market recognition of liquid cooling demand that Blackstone is now positioned to scale globally.
The fine print
- Audax will retain a minority equity stake in FCH as part of the deal structure, maintaining ongoing upside participation alongside Blackstone's controlling interest.
- Transaction price was undisclosed; financial advisors included Houlihan Lokey, Jefferies, William Blair, UBS Investment Bank and Goldman Sachs.
Source: PE Professional · Sep 15, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.