Modine buys Canadian AHU manufacturer
26th February 2024
USA/CANADA: Modine has entered into a definitive agreement to acquire Canadian air handling unit manufacturer Scott Springfield Manufacturing.
Scott Springfield Manufacturing employs approximately 500 people at two manufacturing facilities in Calgary.
With this transaction, Modine says it will gain immediate access to a highly complementary product portfolio and a blue-chip customer base in several strategic end markets, including hyperscale and colocation data centres, telecommunications, healthcare and aerospace.
Modine will also gain a sales representative network in the indoor air quality market covering additional areas in the US and Canada, creating cross-selling opportunities for Modine’s existing chiller portfolio.
“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 centre operators,” said Modine president and CEO Neil D Brinker.
With the acquisition of Texas-based chiller, condensing unit and heat pump manufacturer Napps Technology last year and the recent purchase of the assets of liquid immersion cooling business TMGcore, climate solutions president Eric McGinnis said: “The acquisition of Scott Springfield will expand our portfolio and manufacturing footprint, enabling us to meet a complete range of client needs in our targeted data centre and IAQ markets, positioning us as a one-stop shop for mission-critical HVAC solutions.”
Scott Springfield Manufacturing expects to report final revenue for their fiscal 2023 of more than US$100m. Total consideration for the transaction is based on an enterprise value of approximately $190m and is expected to close in the first calendar quarter of 2024.
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