Samsung in talks to acquire data center cooling company Modine Manufacturing - report

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South Korean tech giant Samsung Electronics is in talks to acquire data center cooling business Modine Manufacturing.
Bloomberg reports that discussions are still in early stages, and there is no guarantee of a sale. Another suitor could also make a bid for Modine.
Ahead of the news, Modine had a market cap of $5.6 billion, but it is now valued at $7.28bn. Modine acquired cooling firm Airedale in 2005, with the company one of the largest end-to-end cooling solutions providers in the data center industry. The business also offers technologies for liquid cooling.
This May, Samsung spent $1.68bn on HVAC specialist FläktGroup, and in September it announced plans to build a Korean factory to manufacture coolant distribution units (CDUs), fan wall units (FWUs), computer room air handlers (CRAHs), and air handling units (AHUs) for AI data centers, semiconductor fabs, and battery plants.
Prior to acquisition talks, Modine shares had been steadily declining since it reported mixed fiscal second-quarter 2027 results. The company missed earnings per share estimates, but beat revenue forecasts at $994.4 million.
Data center-specific sales rose 95 percent over last year, primarily driven by US hyperscale demand.
"We recently received a major new program award with a strategic hyperscaler customer," Neil Brinker, president, CEO, and director, said on an earnings call earlier this month.
"Through this partnership, we will supply more than $400 million of custom air handling units through calendar year 2027 to cool next-generation data centers. We have continually added manufacturing capacity to support the surging demand for our air handling products since acquiring the Scott Springfield business in 2024.
"To that end, we are currently launching production at our third dedicated data center facility in Calgary and are actively increasing throughput at our facility in Franklin, Wisconsin. Demand continues to be incredibly strong across our entire data center cooling portfolio."
However, the company warned that higher material costs, broader inflation, tariffs, and supply chain challenges were impacting margins.

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