Modine, a thermal management and ventilation solutions company, has entered into a definitive agreement to acquire Scott Springfield Manufacturing, a manufacturer of air handling units (AHU).
Through the acquisition, Modine has gained an air handling unit specialist for its strategic data centre and indoor air quality markets
Specifically, Modine has gained immediate access to a highly complementary product portfolio and a blue-chip customer base in several strategic end markets, including hyper-scale and colocation data centres, telecommunications, healthcare and aerospace.
Neil Brinker, President and CEO of Modine said: “We are excited to welcome the Scott Springfield team to the Modine family and continue to advance our complete suite of products in the data center area, as well as expand our indoor air quality offerings.”
Based in Calgary, Canada, Scott Springfield Manufacturing is known for design and engineering expertise in the manufacture of AHUs for a broad range of commercial and industrial applications.
Scott Springfield Manufacturing expects to report final revenue for their fiscal 2023 of more than $100 million (USD)
Scott Springfield Manufacturing employed approximately 500 people at two manufacturing facilities in Calgary that served different end markets.
The facility producing AHUs for blue-chip hyperscale and colocation data centre customers is equipped with automated manufacturing equipment and is optimised 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, clean rooms and laboratories.
With the purchase, Modine will also gain a sales representative network in the indoor air quality market covering additional areas in the U.S. and Canada, creating cross-selling opportunities for Modine’s existing chiller portfolio.
Scott Springfield Manufacturing expects to report final revenue for their fiscal 2023 of more than $100 million (USD)
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.
The transaction will be financed through a combination of cash and debt and consideration will be paid in Canadian dollars.
Management expects this acquisition to be immediately accretive to earnings and anticipates generating incremental growth and future cost savings through deployment of Modine’s 80/20 operating model.
Barclays served as an advisor to Modine for the transaction, and Angle Advisors served as an advisor to Scott Springfield Manufacturing.
