Modine Expands Commercial IAQ Portfolio with Acquisition of Climate by Design International

Rhea-AI Summary

Modine (NYSE: MOD) has announced the acquisition of Climate by Design International (CDI), a Minnesota-based manufacturer specializing in desiccant dehumidification technology and critical process air handlers. This strategic acquisition enhances Modine's commercial indoor air quality (IAQ) solutions portfolio and follows their previous acquisitions of Napps Technology in 2023 and Scott Springfield in 2024.

CDI's specialized technologies provide critical humidity control capabilities for low-temperature environments, particularly in sectors such as pharmaceutical manufacturing, healthcare, food processing, cold storage, battery manufacturing, and ice arenas. The acquisition grants Modine additional U.S. manufacturing capacity for air-handling systems and access to new end markets.

The transaction is expected to be accretive to earnings before synergies and will drive incremental growth through Modine's 80/20 operating model. CDI will be integrated into Modine's comprehensive Commercial IAQ portfolio, with Oppenheimer & Co. Inc. serving as the exclusive financial advisor for the transaction.

Positive

• Acquisition expected to be accretive to earnings before synergies
• Expands product portfolio with desiccant dehumidification technology
• Provides access to new end markets including pharmaceutical, healthcare, and food processing
• Adds U.S. manufacturing capacity for air-handling systems
• Strengthens commercial IAQ solutions capabilities
• Complements previous strategic acquisitions (Napps Technology and Scott Springfield)

Negative

• None.

News Market Reaction – MOD

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Strategic acquisition brings Modine desiccant dehumidification technology and additional capacity for critical process air handling systems

RACINE, Wis., July 1, 2025 /PRNewswire/ -- Modine (NYSE: MOD), a global leader in thermal management technology and solutions, announced the acquisition of Climate by Design International (CDI), a Minnesota-based manufacturer specializing in desiccant dehumidification technology and critical process air handlers. This strategic acquisition builds on Modine's capabilities in specialty commercial indoor air quality (IAQ) solutions, broadening the company's ability to serve a wider range of customer needs.

"Acquiring CDI advances our strategy to grow our Commercial IAQ business with fit-for-purpose solutions," said Neil D. Brinker, President and CEO of Modine. "CDI brings deep expertise in desiccant-based dehumidification and a strong reputation for engineering excellence. Combined with our acquisition of Napps Technology in 2023 and Scott Springfield in 2024, CDI's technology expands Modine's Commercial IAQ product portfolio to new markets."

CDI's specialized technologies provide critical humidity control in low-temperature environments such as pharmaceutical manufacturing and healthcare, filling a gap in Modine's existing Commercial IAQ product portfolio. The acquisition also gives Modine access to new end markets in food processing, cold storage, battery manufacturing, and ice arenas, and additional manufacturing capacity in the U.S. for air-handling systems.

"We're focused on delivering HVAC solutions that not only meet today's performance standards but also anticipate tomorrow's environmental and operational demands," said Eric McGinnis, President of Climate Solutions at Modine. "CDI's desiccant-based technologies are a powerful addition to our portfolio, enabling us to meet customer needs for precise humidity control and air handling manufacturing capabilities. This acquisition enhances our ability to deliver integrated, high-performance systems to customers in healthcare, industrial, and food processing markets, sectors where Modine is expanding."

Management expects CDI to be accretive to earnings before synergies, while also driving incremental growth through deployment of Modine's 80/20 operating model. CDI will be a part of Modine's comprehensive Commercial IAQ portfolio. Oppenheimer & Co. Inc. served as exclusive financial advisor to Modine. More information about the transaction is available on Modine's Investor Relations website.

About Modine
For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 11,000 employees worldwide, our Climate Solutions and Performance Technologies segments advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, enable cleaner running vehicles, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit modine.com.

Media Contact: pr@modine.co

Investor Contact:
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com

Forward-Looking Statements

This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended March 31, 2025 and under Forward-Looking Statements in Item 7 of Part II of that same report. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation, energy costs, government incentive or funding programs, supply chain challenges or supplier constraints, logistical disruptions, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, changes in interest rates, tightening of the credit markets, recession or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the U.S. or abroad, including those related to tax and trade, climate change, public health threats, and military conflicts, including the conflicts in Ukraine and in the Middle East and tensions in the Red Sea; the overall health and pricing focus of our customers; changes or threats to the market growth prospects for our customers; our ability to successfully realize anticipated benefits, including improved profit margins and cash flow, from our strategic initiatives and our application of 80/20 principles across our businesses; our ability to be at the forefront of technological advances and the impacts of any changes in the adoption rate of technologies that we expect to drive sales growth; our ability to accelerate growth organically and through acquisitions and successfully integrate acquired businesses; our ability to successfully exit portions of our business that do not align with our strategic plans; our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses while also completing restructuring activities and realizing benefits thereof; our ability to fund our global liquidity requirements efficiently and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of product or program launches, unexpected volume increases or decreases, product transfers and warranty claims; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; our ability to recruit and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation and the increasing emphasis on environmental, social and corporate governance matters; our ability to realize the benefits of deferred tax assets; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any forward-looking statements.

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SOURCE Modine

FAQ

What company did Modine (NYSE: MOD) acquire in July 2025?

Modine acquired Climate by Design International (CDI), a Minnesota-based manufacturer specializing in desiccant dehumidification technology and critical process air handlers.

How will the CDI acquisition impact Modine's earnings?

The acquisition is expected to be accretive to earnings before synergies and will drive incremental growth through Modine's 80/20 operating model.

What new markets will Modine access through the CDI acquisition?

The acquisition provides access to new markets including pharmaceutical manufacturing, healthcare, food processing, cold storage, battery manufacturing, and ice arenas.

How does the CDI acquisition fit into Modine's broader acquisition strategy?

The CDI acquisition follows Modine's strategic acquisitions of Napps Technology in 2023 and Scott Springfield in 2024, expanding their Commercial IAQ product portfolio.

What technologies does CDI bring to Modine's portfolio?

CDI brings specialized desiccant dehumidification technology and critical process air handlers, particularly for low-temperature environments.