Acquisition provides modular heat pump
chillers and condensing units that complement Modine's
existing indoor air quality line focused on the North
American K-12 school market
RACINE,
Wis., July 6, 2023 /PRNewswire/ --
Modine (NYSE: MOD), a diversified global leader in innovative
thermal management and ventilation solutions, announced today that
it acquired Napps Technology, a manufacturer of air- and
water-cooled chillers, condensing units and heat pumps for the K-12
school market and other similar applications. This acquisition is
in line with Modine's growth strategy to provide differentiated
technologies and systems that help customers address real-world
concerns, such as improving indoor air quality in schools.
"Since announcing our transformation initiatives last year, we
have said that acquisitions would be a key part of our growth
strategy," said Neil Brinker,
President and Chief Executive Officer of Modine. "Acquiring Napps
Technology is in line with our transformation to focus on
innovative, engineered solutions that expand our technology
portfolio, and furthers our purpose of engineering a cleaner,
healthier world. We are excited to demonstrate that Modine is doing
what we committed: investing in markets with strong tailwinds that
advance our product and technology strategies and help us achieve
our long-term margin targets."
Modine currently serves the approximately $2 billion North American chiller market with
large chillers targeting the data center market. The acquisition of
Napps Technology allows Modine to enhance its offerings to the K-12
school market, while also enabling Modine to serve a broader range
of customers and end markets seeking small tonnage chillers and
chillers with heat pumps. Modine expects to generate between
$6 million to $8 million in revenue this year from the
acquisition and forecasts doubling that within two years.
"Technologies that improve indoor air quality are more important
than ever, especially in schools," said Jake Feldman, Vice President and General Manager
of Modine's Indoor Air Quality business. "Napps Technology's
modular, heat pump chillers perfectly complement our existing
portfolio of indoor air quality technologies and equip us to meet a
broader range of customer needs in the K-12 school market and
beyond," said Feldman.
Modine also announced that it will continue to manufacture in
Longview, Texas, and that
Sam Neale, current president of
Napps Technology, will join Modine. Jake
Feldman continued, "Sam has done an outstanding job building
the Jetson brand and diversifying Napps Technology's product
and customer base over the last five years. We're thrilled to have
him join Modine."
"Modine is a leader in providing quality, innovative heating and
cooling solutions. We're proud to become part of Modine and look
forward to continuing to provide trusted systems that improve
indoor air quality." said Sam
Neale.
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.
Investor Contact: Kathleen
Powers; kathleen.t.powers@modine.com; (262) 636-1687
Media Contact: pr@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, 2023 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, rising energy costs, along with
supply chain challenges or supplier constraints, 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, increases in
interest rates or tightening of the credit markets, recession,
restrictions associated with importing and exporting and foreign
ownership, public health crises, and the general uncertainties
about the impact of regulatory and/or policy changes, including
those related to tax and trade, the COVID-19 pandemic, the military
conflict in Ukraine and other
matters, that have been or may be implemented in the U.S. or
abroad; the impact of the COVID-19 pandemic on the national and
global economy, our business, suppliers, customers, and employees;
the overall health and pricing focus of our customers; our ability
to successfully execute our strategic and operational plans,
including applying 80/20 principles to our business; our ability to
effectively and efficiently modify our cost structure in response
to sales volume increases or decreases and complete restructuring
activities and realize benefits thereon; 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 program launches, unexpected volume
increases or decreases, and product transfers; 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; the nature of
and Modine's significant exposure to the vehicular industry and the
dependence of this industry on the health of the economy; 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 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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