Modine Announces Sale of Three Automotive Businesses in Germany Principally Manufacturing Parts for Internal Combustion Engine Applications in Europe
7 September 2023
Modine (NYSE: MOD), a global leader in innovative thermal management technology and solutions, has announced the signing of a definitive agreement to sell three of its German-based businesses to affiliates of Regent LP. These businesses are situated in Neuenkirchen, Pliezhausen, and Wackersdorf. The completion of this sale is anticipated within the coming weeks, pending regulatory approval.
Neil Brinker, President and Chief Executive Officer of Modine, stated, "The sale of these businesses is in line with our strategy to focus our resources on high-margin technologies with strong growth drivers. 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 are engaged in the manufacturing of 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 these businesses amounted to between $80-$90 million.
Adrian I. Peace, President, Performance Technologies, emphasized Modine's priorities for its vehicular businesses, stating, "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. 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."