Modine has acquired Canadian air handling company Scott Springfield Manufacturing.
The company this week announced it had entered into a definitive agreement to acquire the Calgary, Alberta-based manufacturer of air handling units (AHU).
Founded in 1978, Scott Springfield employs approximately 500 people at two manufacturing facilities in Calgary that serve different end markets.
Total consideration for the transaction is based on an enterprise value of approximately US$190 million 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.
Modine said it will gain ‘immediate access to a highly complementary product portfolio and a blue-chip customer base,’ including hyperscale and colocation data centers.
"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," said Neil D. Brinker, president and CEO of Modine. "The acquisition is right in line with our transformation and will bring Modine a product line and customer base in high-growth markets that fully complement and expand our current reach, including to hyperscale data center operators.”
He continued: “The addition of custom air handling unit capabilities demonstrates our continued commitment to focus on innovative, engineered solutions that help us achieve our long-term growth targets. Coming on the heels of our acquisition of Napps Technology last year and the purchase of liquid immersion cooling assets last month, Modine is in a very strong position to provide customers a full range of technology solutions in critical cooling and ventilation applications."
Scott Springfield Manufacturing expects to report final revenue for their fiscal 2023 of more than $100 million.
“Scott Springfield Mfg. Inc. is excited to join the Modine Manufacturing Company Team as we continue to drive growth as well as gain from the depth of Modine’s experience in the HVAC industry,” Scott Springfield said on LinkedIn. “We are eager for the bright future and opportunities this brings to the SSM team, along with the valuable partnerships we have established with our customers and suppliers.”
Barclays served as an advisor to Modine for the transaction, and Angle Advisors served as an advisor to Scott Springfield Manufacturing.
