World News

Industry news and insights from Europe and around the World

UK News

Latest news and developments in the United Kingdom


Keep up-to-date with the latest new products and technology


General articles, applications and industry analysis

Modine to acquire Luvata for $422m

Modine-logo-copyUSA: Modine Manufacturing, the US owner of Airedale, is to acquire coil company Luvata HTS in a $422m deal.

The deal, which will be financed through a combination of cash, debt, and $25m of Modine common stock, is expected to be completed this year.

The Cooling Post revealed rumours in January that Luvata had been put up for sale by its Jersey-based private-equity-owners Nordic Capital. The company was originally acquired by Nordic from Outokumpu in 2005. In 2015, Luvata HTS had net sales of roughly $530m and EBITDA of $59m.

“Luvata HTS is the largest independent producer of HVAC&R coils and coatings globally,” said Thomas A Burke, Modine’s president and CEO. “They bring an innovative culture and broad product offering that are highly complementary to Modine. Further, they bring a global footprint with manufacturing facilities spread over three continents. Most importantly, the addition of Luvata HTS helps to expand our margin profile and future growth opportunities.”

Luvata HTS is a leading manufacturer of commercial and industrial coils, coolers and related products, primarily for the HVAC&R markets. Luvata HTS’s product offering covers a broad range of heat exchanger coils, commercial refrigeration and industrial coolers, complemented by anti-corrosion coating solutions. In addition, Luvata HTS is a significant player in the power generation and transformer cooler markets due to strong relationships with European OEMs.

“We examined several interesting acquisition opportunities as part of our strategic review process, but Luvata HTS was the most logical and compelling fit,” Burke added. “While the company already operates a fairly lean enterprise, we do expect to achieve annual cost synergies of roughly $15m within the first three to four years, in particular through the ongoing optimisation of manufacturing and procurement organisations and cost structures.

“We also believe revenue synergies will emerge as we look to sell Luvata HTS’ products into Modine’s broad client base, utilise Luvata HTS’ sales team to sell Modine’s coil and other products into Luvata HTS’ client base, and pursue other larger geographic and adjacent product line opportunities in the future.”

Latest News

18th July 2024

Cylinder explosion destroys car

SPAIN: Early reports suggest a car destroyed on a street in Malaga last week was caused by an exploding refrigerant cylinder.
18th July 2024

European heat pump sales down 6.5% in 2023

BELGIUM: Heat pump sales were 6.5% lower in 2023, the first fall after ten years of annual growth, threatening Europe’s 2030 climate targets.
17th July 2024

SWEP BPHE for lower GWP refrigerants

USA: SWEP has launched the 190 range of brazed plate heat exchangers optimised for low GWP refrigerants.
17th July 2024

Airedale data cooling solution commended

USA: The first data centre at Corscale’s Gainesville Crossing campus is set to open following the successful integrated systems testing (IST) of the recently installed Airedale by Modine cooling solution.
17th July 2024

Mirai Intex extends ULT air-cycle machine

CZECHIA: Mirai Intex has extended its range of air-cycle refrigeration process chillers with the MC 150 T unit, providing ultra-low temperatures from -40°C down to -160°C.
17th July 2024

Paul Kenny named EHPA director general

BELGIUM: Paul Kenny, a sustainable energy expert and former special advisor to the Irish government, has been named as the new director general of the European Heat Pump Association (EHPA).