Samsung Electronics in Talks to Acquire Modine, Moves to Expand AI Data Center Cooling Business
IT DAILY ·
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Reports said Samsung Electronics is in talks to acquire Modine Manufacturing, a U.S. specialist in data center cooling systems.
Bloomberg reported on the 12th, citing multiple sources, that the two companies are discussing an acquisition deal.
Modine's data center division revenue for the July-September period this year was USD 439.7 million, and operating profit was USD 61.2 million.
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Reports said Samsung Electronics is in talks to acquire Modine Manufacturing, a U.S. data center cooling systems specialist. Bloomberg reported on the 12th, citing multiple sources, that Samsung Electronics and Modine are discussing an acquisition deal. The photo shows Modine's headquarters in Racine, Wisconsin.
The discussions are seen as part of Samsung Electronics' push to secure a North American thermal management company, following Germany's FläktGroup. The goal is reportedly to expand its global supply base for AI data center cooling businesses.
According to multiple sources, an agreement could be reached as soon as within weeks. However, a final decision has not yet been made, and the talks could still collapse. The possibility of another acquisition candidate emerging was also raised.
Modine, headquartered in Racine, Wisconsin, is a thermal management specialist that supplies heating, ventilation and cooling systems for commercial buildings and industrial facilities. Modine has recently been pursuing a strategy to expand its supply of cooling equipment to hyperscalers that build and operate large-scale data centers.
Backed by that sales growth, Modine's data center division revenue for the July-September period this year rose 95% from a year earlier to USD 439.7 million. Operating profit for the same period was USD 61.2 million, up 70%, with expanded sales to North American hyperscale customers cited as a factor behind the earnings growth.
In October, Modine spun off its thermal management business related to automotive and industrial equipment and shifted its focus to data center cooling and commercial HVAC businesses. Then on the 11th, it began commercial production of chillers for data centers at a new plant in Grand Prairie, Texas, expanding its North American production capacity.
At the close of regular trading on the U.S. stock market on the 12th, Modine shares stood at USD 106.10, with a market capitalization of about USD 5.6 billion at the time. After the report on the acquisition talks, the stock surged more than 28% in after-hours trading, briefly topping USD 135.
Samsung Electronics completed its acquisition of Germany's HVAC specialist FläktGroup in November 2025 for about EUR 1.5 billion. With the FläktGroup acquisition, Samsung Electronics expanded its business from its existing focus on individual air conditioning systems to central HVAC systems for data centers and large industrial facilities.
In September this year, Samsung Electronics invested about KRW 240 billion in its Gwangju campus. The purpose of the investment is to begin building new production lines for FläktGroup, with the target start of production set for 2028. The site is planned to produce cooling distribution units (CDUs) and HVAC equipment for data centers.
If the Modine acquisition goes through, Samsung Electronics is expected to add Modine's North American customer network and production capabilities to the HVAC and cooling business base secured through FläktGroup. Modine supplies thermal management equipment such as chillers, cooling distribution units and dry coolers for data centers.
The backdrop to this trend is changing AI data center conditions. As power consumption and heat output from high-performance semiconductors increase, the performance and energy efficiency of cooling systems are emerging as key factors that determine server operating stability and operating costs.
As major HVAC and thermal management companies step up investment in data center cooling, LG Electronics is expanding its investment in data center cooling businesses, Daikin Industries is also expanding its investment in data center cooling businesses, and Vertiv Holdings is likewise expanding its investment in data center cooling businesses. In this environment, Samsung Electronics is pursuing an acquisition of Modine, and if the deal succeeds, it could combine FläktGroup's central HVAC business base with Modine's North American customer network as well as Modine's production facilities, potentially enhancing its global market competitiveness through the combined effect.
Source: IT DAILY · Kim Byung-joo
Original: https://www.itdaily.kr/news/articleView.html?idxno=242935
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Source: IT DAILY
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