Modine has acquired Napps Technology, a manufacturer of air- and water-cooled chillers, condensing units and heat pumps.
This acquisition is in line with Modine's growth strategy to provide differentiated technologies and systems that help customers address real-world concerns, such as improving indoor air quality in schools.
Modine president and CEO, Neil Brinker, said acquisitions are a key part of Modine’s growth strategy.
"Acquiring Napps Technology is in line with our transformation to focus on innovative, engineered solutions that expand our technology portfolio, and furthers our purpose of engineering a cleaner, healthier world,” he said.
“We are excited to demonstrate that Modine is doing what we committed: investing in markets with strong tailwinds that advance our product and technology strategies and help us achieve our long-term margin targets."
Modine currently serves the approximately $2 billion North American chiller market with large chillers targeting the data centre market.
The acquisition of Napps Technology allows Modine to enhance its offerings to the K-12 school market, while also enabling Modine to serve a broader range of customers and end markets seeking small tonnage chillers and chillers with heat pumps.
Modine expects to generate between $6 million to $8 million in revenue this year from the acquisition and forecasts doubling that within two years.
Vice president and general manager of Modine's Indoor Air Quality business, Jake Feldman, said technologies that improve indoor air quality are more important than ever.
"Napps Technology's modular, heat pump chillers perfectly complement our existing portfolio of indoor air quality technologies and equip us to meet a broader range of customer needs in the school market and beyond," Feldman said.
Modine also announced that it will continue to manufacture in Longview, Texas, and that Sam Neale, current president of Napps Technology, will join Modine.