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RACINE, Wis. - Modine Manufacturing Company (NYSE: MOD), a global player in thermal management technology and solutions with a market capitalization of $4.8 billion, has announced its definitive agreement to purchase L.B. White, a prominent provider of specialized heating solutions. According to InvestingPro data, Modine maintains a strong financial health score and has demonstrated solid profitability with a 25% gross margin over the last twelve months. The acquisition, which is expected to be completed on May 31, 2025, pending standard closing conditions, marks Modine’s continued expansion into diverse markets.
L.B. White, recognized for its leadership in the North American swine and poultry heating market, also holds a significant position in portable heaters. The company, which is set to report $73.5 million in revenue for the fiscal year ending on the same day as the anticipated acquisition closure, will be integrated into Modine’s HVAC Technologies segment. The enterprise value of the transaction is approximately $112 million, representing a strategic move for Modine, which currently generates annual revenues of $2.6 billion. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 12 additional exclusive insights available to subscribers.
Modine’s President and CEO, Neil D. Brinker, highlighted the strategic fit of L.B. White’s products with Modine’s technology expertise and the expected benefits of entering adjacent markets with robust growth potential. Eric McGinnis, President of Climate Solutions at Modine, emphasized the synergies between the two companies’ technologies and sales channels, which are anticipated to meet evolving customer needs effectively.
The deal is expected to be immediately accretive to Modine’s earnings, with management forecasting incremental growth and future cost savings from synergies and the application of Modine’s 80/20 operating model. The current leadership team at L.B. White will remain post-acquisition.
Modine, with over a century of experience in the industry, is committed to solving thermal management challenges and advancing its purpose of "Engineering a Cleaner, Healthier World™". With more than 11,000 employees worldwide, Modine operates across the Americas, Europe, and Asia. The company’s financial strength is evident in its healthy current ratio of 1.78 and moderate debt levels. For detailed analysis and comprehensive insights, investors can access the full Pro Research Report available on InvestingPro, covering over 1,400 top US stocks.
This acquisition is based on a press release statement and is subject to the risks and uncertainties associated with forward-looking statements, including those detailed in Modine’s Annual Report on Form 10-K for the year ended March 31, 2025.
In other recent news, Modine Manufacturing reported strong financial results for the fourth quarter of fiscal year 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.12, beating the forecasted $0.96, and generated revenue of $647.2 million, exceeding projections by $12.71 million. Modine’s Climate Solutions segment saw significant growth, contributing to a 7% increase in overall sales. The company’s adjusted EBITDA margin improved to 15.2% for the full year, reflecting a 210 basis point increase from fiscal 2024. Additionally, Modine announced a $100 million stock buyback program, further demonstrating its financial strength.
Analysts at DA Davidson maintained a Buy rating on Modine, setting a price target of $135.00, citing the company’s success in expanding its data center market presence. Modine’s strategic focus on high-growth segments like Climate Solutions and data centers is expected to continue driving its performance. Despite challenges in the vehicular markets and increased investment spending, Modine’s robust balance sheet positions it well for potential mergers and acquisitions. The company’s strategic initiatives and cost reduction efforts have led to a 32% rise in adjusted EBITDA for the quarter, showcasing operational efficiency.
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