Modine has entered into a definitive agreement to acquire Scott Springfield Manufacturing, a leading manufacturer of air handling units (AHU).
With this transaction, Modine 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 president & CEO, Neil D. Brinker, welcomed the Scott Springfield team to Modine pointing out that the deal will expand the company’s IAQ and data centre offerings.
"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,” Brinker said.
“Further, the addition of custom air handling unit capabilities demonstrates our continued commitment to focus on innovative, engineered solutions that help us achieve our long-term growth targets.
“Coming on the heels of our acquisition of Napps Technology last year and the purchase of liquid immersion cooling assets last month, Modine is in a very strong position to provide customers a full range of technology solutions in critical cooling and ventilation applications."
Based in Calgary, Canada, Scott Springfield Manufacturing is known for premier design and engineering expertise in the manufacture of AHUs for a broad range of commercial and industrial applications.
The company employs approximately 500 people at two manufacturing facilities in Calgary that serve different end markets.
The facility producing AHUs for blue-chip hyperscale and colocation data center customers is equipped with automated manufacturing equipment and is optimized for higher volume production.
The other facility manufactures custom-built AHUs chiefly for the healthcare sector. Specially engineered AHUs are imperative in meeting the stringent HVAC, indoor air quality and energy efficiency requirements of hospitals, cleanrooms and laboratories.
With the purchase, 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.
Climate Solutions president, Eric McGinnis, said technology solutions that address real-world concerns are more important than ever.
“Modine's data centre and IAQ businesses deliver these world-class HVAC solutions to markets where efficient and effective thermal management and ventilation are vital,” he 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 $100 million (USD). Total consideration for the transaction is based on an enterprise value of approximately $190 million (USD) and is expected to close in the first calendar quarter of 2024.