Modine Acquires Scott Springfield Manufacturing, Gaining Air Handling Unit Offering For Strategic Data Center And Indoor Air Quality Markets; No Financial Terms Disclosed
Portfolio Pulse from Benzinga Newsdesk
Modine (NYSE:MOD) has announced the acquisition of Scott Springfield Manufacturing, a leading air handling unit manufacturer, to enhance its data center technology portfolio and indoor air quality offerings. This strategic move aims to expand Modine's product line and customer base in high-growth markets such as hyperscale data centers and healthcare. The acquisition, valued at approximately $190 million, is expected to close in the first quarter of 2024 and is anticipated to be immediately accretive to earnings. Scott Springfield's fiscal 2023 revenue is expected to exceed $100 million.

February 26, 2024 | 1:42 pm
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POSITIVE IMPACT
Modine's acquisition of Scott Springfield Manufacturing is set to strengthen its position in the data center and indoor air quality markets, with an expected immediate positive impact on earnings.
The acquisition of Scott Springfield Manufacturing aligns with Modine's strategic focus on expanding its product offerings and customer base in high-growth markets. Given the expected immediate accretive impact on earnings and the strategic fit, this acquisition is likely to be viewed positively by investors, potentially leading to a short-term increase in Modine's stock price.
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