Modine Enters into Agreement to Acquire Luvata Heat Transfer Solutions

RACINE, Wis. – Modine Manufacturing Company has entered into a definitive agreement to acquire Luvata Heat Transfer Solutions for a total consideration of approximately $422 million, to be financed through a combination of cash, debt and $25 million of Modine common stock. Modine expects the transaction to close within calendar year 2016, subject to customary closing conditions, including regulatory review.

Highlights:

  • Addresses “Diversify” and “Grow” commitments in Modine’s transformational strategy, announced in October 2015
  • Increases Modine’s industrial business portfolio to approximately 40 percent of sales
  • Further leverages Modine’s expertise in the global HVAC&R markets
  • Broadens Modine’s customer base and reduces cyclical exposure
  • Expands margin and growth profile of the company
  • Delivers immediate accretive value to EPS before the expected benefit of approximately $15 million of cost synergies

Luvata HTS is a 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. Luvata HTS has a highly diversified customer base with strong and long-standing relationships. With agile manufacturing capabilities in North America, Europe and Asia, the company has a proven ability to attract and serve a wide range of customers across several industrial markets. In 2015, Luvata HTS had net sales of roughly $530 million and EBITDA of $59 million.

Modine conducted a conference call and live webcast, with a slide presentation, on Sept. 7 to discuss this transaction. A replay of the audio and slides are available on the Investor Relations section of the Modine website at www.modine.com.