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.
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
and in the Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2023. 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 or recovery therefrom,
restrictions associated with importing and exporting and foreign
ownership, public health crises, and the general uncertainties,
including the impact on demand for our products and the markets we
serve, from regulatory and/or policy changes, including those
related to tax and trade, climate change, COVID-19 or future public
health threats, the military conflict in Ukraine and other matters, that have been or
may be implemented in the U.S. or abroad; the overall health and
pricing focus of our customers; our ability to successfully realize
further anticipated benefits, including improved profit margins and
cash flow, from our strategic initiatives and our application of
80/20 principles across our businesses; our ability to accelerate
growth organically and through acquisitions and successfully
integrate acquired businesses; our ability to effectively and
efficiently manage our operations in response to sales volume
changes, including maintaining adequate production capacity to meet
demand in our growing businesses while also completing
restructuring activities and realizing benefits thereof; 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 product or 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; 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 the
increasing emphasis on environmental, social and corporate
governance matters; 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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