Modine $1bn spin-off sharpens climate solutions focus

USA: Modine has entered into a definitive agreement to spin-off its Performance Technologies business to become a pure-play climate solutions company.

In a deal valued at approximately $1bn, Modine will combine its Performance Technologies business, which provides thermal management solutions to the vehicular and power generation industry, with Gentherm, a Michigan-based company involved in thermal management, pneumatic comfort, and fluid systems with automotive and medical applications.

Modine will retain its Climate Solutions businesses, which includes UK manufacturer Airedale, creating a pure-play climate solutions company focused on the data centre and commercial HVAC and refrigeration end markets. 

Describing the deal as a “significant step” for its remaining Climate Solutions business, Modine president and CEO Neil Brinker said: “This transaction comes at an opportune time, allowing us to focus all of our resources on high-returning investments, including capacity expansions for data centre cooling solutions to meet the rapidly growing demands of our hyperscale and colocation data centre customers as well as targeted acquisitions to support other areas of the business.”