Modine Manufacturing Company to purchase world-leading HVACR business
(Luvata: London, UK. 6th September 2016) Luvata is pleased to announce the signing of a Share Purchase Agreement (SPA) with Modine Manufacturing Company (NYSE:MOD) for Modine to buy Luvata's US-headquartered Heat Transfer Solutions (HTS) division. Luvata was purchased in 2005 from Outokumpu Oyj under Private Equity by Nordic Capital.
The division has 18 plants across the globe, excellent operations, extensive customer and supplier relationships, and is a leading presence in many international heat-transfer markets. The agreement has been facilitated by Luvata Oy's financial advisor, Citigroup Global Markets Limited, and is expected to conclude in the next 3 to 4 months.
Jyrki Vesaluoma, MD and CFO of Luvata Group comments: "In eleven years under its current owners, Luvata Group has grown in profitability by 250% despite enduring the global recession and huge shifts in commodity prices. Today, the HTS Division is more focused and efficient with a very strong strategic presence in its markets and regions. Luvata and its owners are proud to have taken this important step toward combining the HTS Division with Modine - another proven industry leader that shares our passion for innovation and commitment to integrity."
Modine President and Chief Executive Officer, Thomas A. Burke adds: "Luvata HTS is the largest independent producer of HVAC&R coils and coatings globally. They bring an innovative culture and broad product offering that are highly complementary to Modine. Further, they bring a global footprint with manufacturing facilities spread over three continents, all of which are supported by best in class sales, engineering and support teams. Most importantly, the addition of Luvata HTS helps to expand our margin profile and future growth opportunities."
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Luvata is a world leader in metal solutions manufacturing and related engineering services. Luvata's solutions are used in industries such as renewable energy, power generation, automotive, medicine, air-conditioning, industrial refrigeration, and consumer products. The company's continued success is attributed to its longevity, technological excellence and strategy of building partnerships beyond metals. Employing over 6,400 staff in 18 countries, Luvata works in partnership with customers such as SolarWorld, Siemens, Toyota, CERN and Carrier. Luvata is owned by Nordic Capital Funds V and VI.
Modine, with fiscal 2016 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 and refrigeration systems. Modine is a global company headquartered in Racine, Wisconsin (USA), with operations in North America, South America, Europe, Asia and Africa. For more information about Modine, visit www.modine.com.