Modine Announces Sale of Three Automotive Businesses in Germany to Regent
Divestiture reflects corporate strategy to focus on higher-margin technologies with strong growth drivers.
RACINE, Wis., Sept. 6, 2023 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in innovative thermal management technology and solutions, announced today that it has signed a definitive agreement to sell three Modine businesses based in Germany to affiliates of Regent LP. The businesses are located in Neuenkirchen, Pliezhausen and Wackersdorf. The sale is expected to be completed in the next few weeks pending regulatory approval.
"The sale of these businesses is in line with our strategy to focus our resources on high-margin technologies with strong growth drivers," said Neil Brinker, President and Chief Executive Officer of Modine. "These businesses produce and service non-strategic parts for internal combustion diesel and gasoline engines in the European automotive market. Coming on the heels of Modine's acquisition of Napps Technology, the divestiture of these businesses represents our continued commitment to focus on innovative, engineered solutions that help us achieve our long-term margin targets and furthers our purpose of engineering a cleaner, healthier world."
The businesses manufacture exhaust gas recirculation coolers, radiators and charge air cooler modules for automotive internal combustion engine applications in Europe. In Fiscal Year 2023, the combined revenue from the businesses was between $80-$90 million.
"We've been clear that Modine's priorities for its vehicular businesses are to focus on the most value-added technologies and systems, while rationalizing non-strategic product lines," said Adrian I. Peace, President, Performance Technologies. "Exhaust gas recirculation coolers, radiators and charge air cooler modules for automotive internal combustion engines in Europe were not in line with our focus on investing in product lines and systems with strong tailwinds. We will continue to serve key end markets with our world-class technologies for years to come."
About Modine
At Modine, we are Engineering a Cleaner, Healthier World™. Building on more than 100 years of excellence in thermal management, we provide trusted systems and solutions that improve air quality and conserve natural resources. More than 11,000 employees are at work in every corner of the globe, delivering the solutions our customers need, where they need them. Our Climate Solutions and Performance Technologies segments support our purpose by improving air quality, reducing energy and water consumption, lowering harmful emissions and enabling cleaner running vehicles and 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 www.modine.com.