Modine acquires Climate by Design International to expand IAQ portfolio

Published 01/07/2025, 14:26
Modine acquires Climate by Design International to expand IAQ portfolio

RACINE, Wis. - Modine (NYSE:MOD), a $5.16 billion market cap company with a "GREAT" financial health rating according to InvestingPro, announced Tuesday it has acquired Minnesota-based Climate by Design International (CDI), a manufacturer specializing in desiccant dehumidification technology and critical process air handlers.

The acquisition enhances Modine’s commercial indoor air quality (IAQ) solutions capabilities, particularly in environments requiring precise humidity control such as pharmaceutical manufacturing and healthcare facilities. The move comes as Modine demonstrates solid financial performance with $2.58 billion in revenue and 7.3% revenue growth over the last twelve months.

"Acquiring CDI advances our strategy to grow our Commercial IAQ business with fit-for-purpose solutions," said Neil D. Brinker, President and CEO of Modine.

The purchase gives Modine access to new markets including food processing, cold storage, battery manufacturing, and ice arenas. It also provides additional U.S. manufacturing capacity for air-handling systems.

This acquisition follows Modine’s previous purchases of Napps Technology in 2023 and Scott Springfield in 2024, further expanding its commercial IAQ product portfolio.

Eric McGinnis, President of Climate Solutions at Modine, noted that CDI’s desiccant-based technologies will enhance the company’s ability to deliver integrated systems to customers in healthcare, industrial, and food processing markets.

Management expects the acquisition to be accretive to earnings before synergies and to drive incremental growth through Modine’s 80/20 operating model. CDI will be integrated into Modine’s Commercial IAQ portfolio. With a strong current ratio of 1.78 and trading at a P/E ratio of 28.09, InvestingPro analysis suggests the stock is currently trading near its Fair Value. Investors can access 11 additional ProTips and a comprehensive Pro Research Report covering Modine’s financial outlook and growth potential through InvestingPro.

Oppenheimer & Co. Inc. served as exclusive financial advisor to Modine on the transaction, according to the company’s press release statement.

Modine, headquartered in Racine, Wisconsin, provides heating, cooling, and ventilation solutions through its Climate Solutions and Performance Technologies segments, employing more than 11,000 people worldwide. Analysts maintain a bullish outlook on the company, which has demonstrated consistent profitability and strong market performance over the past decade.

In other recent news, Modine Manufacturing reported impressive financial results for the fourth quarter of fiscal year 2025, exceeding analysts’ expectations. The company achieved an earnings per share of $1.12, surpassing the forecasted $0.96, and revenue of $647.2 million, which was higher than the anticipated $634.49 million. In addition to these strong earnings, Modine announced a definitive agreement to acquire L.B. White, a maker of specialized heating solutions, for approximately $112 million. This acquisition is expected to enhance Modine’s HVAC Technologies segment and contribute immediately to earnings. On the analyst front, Oppenheimer raised its price target for Modine to $122, maintaining an Outperform rating, while KeyBanc initiated coverage with an overweight rating and a $125 price target. DA Davidson also reiterated a Buy rating with a $135 target, citing Modine’s continued success in the data center market. These developments highlight Modine’s strategic focus on growth through acquisitions and its strong performance in high-growth sectors such as data centers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.