Modine Manufacturing Company – MOD – To acquire privately-held Geofinity Manufacturing
Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, announced it has signed a definitive asset purchase agreement to acquire privately-held Geofinity Manufacturing of Surrey, British Columbia. This acquisition will provide Modine with a full line of innovative geothermal heat pumps in both water-to-water and water-to-air models. The deal is expected to close by mid-summer, 2012, and is subject to customary closing conditions. The terms of the deal were not disclosed.
Since its founding, Geofinity has emerged as a technology leader of residential and commercial geothermal heat pump systems. Their geothermal expertise in the research and development of intricate products and controls systems is evidenced by their recent 2012 AHR Innovation Award in the Building Automation Category for the “ORB” Heat Pump Controller.
Geofinity extends Modine’s current geothermal heat pump product range beyond school-only applications to a wider market, one which has grown at a rate of nearly 15% annually, according to Tom Marry, Modine Executive Vice President and Chief Operating Officer.
“Acquiring Geofinity helps us expand our offerings to the growing commercial HVAC business while extending our focus on the residential market,” Marry said. “We have seen – and expect more – growth from our Commercial Products Group and this acquisition will help us build further on this success.”
With a focus on the residential market, Geofinity offers Modine an excellent opportunity to expand their distributed-product offerings to an established customer base.
“The Modine brand is trusted by distributors, engineers, contractors and end users within the commercial HVAC market,” said Matt McBurney, Vice President Commercial Products Group. “Quality. History. Value. Efficiency. We see Geofinity as an extension of our well-established ideals to these same customers, with an added emphasis on the residential market. As such, we will be well positioned to take advantage of the increasing shift to geothermal solutions.”
Geofinity products are used in a variety of residential, commercial and industrial applications, including single-family homes, condominiums, and schools.
“Modine has long been committed to improving HVAC efficiency,” said McBurney. “Like the recent introduction of our Atherion™ packaged rooftop ventilation system, our newly re-designed SchoolMate™ XE geothermal classroom system, or the popular Effinity93™ high efficiency line of gas unit heaters, the Geofinity addition will continue Modine’s dedication to efficiency, offering home owners the opportunity to reduce their monthly heating and cooling costs by up to 70 percent.”
Modine, with fiscal 2011 revenues of $1.4 billion, specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, heating, ventilation and air conditioning equipment, off-highway and industrial equipment, refrigeration systems, and fuel cells. The company employs approximately 6,600 people at 29 facilities worldwide in 15 countries.