Racine-based Modine, a manufacturer of thermal management and ventilation solutions, plans to acquire Calgary, Canada-based Scott Springfield Manufacturing, a producer of air handling units. In a Monday announcement, Modine leadership said the acquisition will provide the company “immediate access to a highly complementary product portfolio.” Modine will also gain customers in several “strategic end markets,”
Racine-based Modine, a manufacturer of thermal management and ventilation solutions, plans to acquire Calgary, Canada-based Scott Springfield Manufacturing, a producer of air handling units.
In a Monday announcement, Modine leadership said the acquisition will provide the company “immediate access to a highly complementary product portfolio.”
Modine will also gain customers in several “strategic end markets,” including colocation data centers, telecommunications, health care and aerospace.
[caption id="attachment_516237" align="alignleft" width="300"] Neil Brinker[/caption]
"We are excited to welcome the Scott Springfield team to the Modine family and continue to advance our complete suite of products in the data center area, as well as expand our indoor air quality offerings," said Neil Brinker, president and chief executive officer of Modine. "The acquisition is right in line with our transformation and will bring Modine a product line and customer base in high-growth markets that fully complement and expand our current reach, including to hyperscale data center operators. Further, the addition of custom air handling unit capabilities demonstrates our continued commitment to focus on innovative, engineered solutions that help us achieve our long-term growth targets. Coming on the heels of our acquisition of Napps Technology last year and the purchase of liquid immersion cooling assets last month, Modine is in a very strong position to provide customers a full range of technology solutions in critical cooling and ventilation applications."
Scott Springfield Manufacturing designs air handling units for various commercial and industrial applications. The company has approximately 500 employees at two manufacturing facilities in Calgary.
One facility manufactures air handling units for colocation data centers while the other makes units for the health care sector. Air handling units are needed to meet the HVAC, indoor air quality, and energy efficiency requirements of hospitals, clean rooms, and laboratories.
Following the acquisition, Modine will also increase the size of its sales representative network which will cover additional areas in the U.S. and Canada, creating cross-selling opportunities for Modine's existing chiller portfolio.
Scott Springfield Manufacturing expects to report final revenue for their fiscal 2023 of more than $100 million. Total consideration for the transaction is based on an enterprise value of approximately $190 million and is expected to close in the first quarter of 2024.
