Modine completes $418M acquisition of Luvata Heat Transfer Solutions
Modine Manufacturing announced the completion of its previously disclosed agreement to purchase Luvata Heat Transfer Solutions. The agreement to acquire the company was announced on September 6. The purchase price was approximately $418M. For the trailing 12 months ended September 30, Luvata HTS had net sales of $549M and EBITDA of $55M. The company expects to achieve annual cost synergies of at least $15M within the first three to four years, in particular through the ongoing optimization of manufacturing and procurement organizations and cost structures. Additional revenue synergies will emerge through the sale of Luvata HTS's products into Modine's broad client base and utilization of Luvata HTS's sales team to sell Modine's coil and other products into Luvata HTS's client base. In light of the addition of the Luvata HTS business and the near-term discontinuation of the Luvata name, Modine will be transitioning to new names for each of its global businesses. These new designations will more clearly define our three distinct, but clearly related businesses. The new Modine names will be: Commercial and Industrial Solutions; Vehicular Thermal Solutions; and Building HVAC Systems. In support of the Commercial and Industrial Solutions integration process, Modine has announced that Dennis Appel, previously President, Luvata HTS, will transfer to Modine in the role of Vice President, Commercial and Industrial Solutions, the company said.