[Edaily Reporter Kim Kyeo-Re ] It has been reported that SamsungElectronics(005930)is in negotiations to acquire Modine Manufacturing, a U.S.-based data center cooling systems company.

Bloomberg reported on the 12th (local time) that SamsungElectronics and Modine are engaged in acquisition negotiations and that the deal could be finalized as early as within the next few weeks.
However, it was reported that no final decision has been made yet, and there is a possibility that negotiations could break down or that another potential buyer could emerge. SamsungElectronics and Modine declined to comment on the matter.
Modine’s market capitalization stands at approximately $5.6 billion (about 7.5 trillion won). Its stock price has fallen by about 15% since it announced quarterly earnings that fell short of market expectations on the 3rd. The acquisition price is expected to be determined after factoring in a control premium and other considerations.
Headquartered in Racine, Wisconsin, Modine manufactures heating, ventilation, air conditioning (HVAC), and cooling systems used in large commercial buildings and industrial machinery. Its fastest-growing business segment recently has been the supply of cooling solutions to hyperscalers building ultra-large data centers.
Last October, Modine restructured its business by spinning off its automotive-related operations to focus on its thermal management business. This move is seen as a strategy to respond to the growing demand for cooling systems driven by the expansion of the AI data center market.
SamsungElectronics has recently been strengthening its data center cooling and HVAC business through acquisitions of overseas companies. Last year, it agreed to acquire the German HVAC and cooling systems company Flakt Group for 1.5 billion euros (approximately 2.2 trillion won). The upcoming acquisition of Modine is expected to be a much larger deal than that of Flakt Group.
SamsungElectronics is expected to strengthen its competitiveness in the global data center cooling market by combining its existing capabilities in home appliances and HVAC with the technological expertise of Flakt Group and Modin. In particular, as AI semiconductors become more powerful, leading to increased power consumption and heat generation in data centers, the importance of efficient cooling systems is growing.
Competition in the AI data center cooling market is also intensifying. Japan’s Daikin Industries and the U.S.-based Vertiv Holdings have each acquired two data center cooling companies since last year. LGELECTRONICS(066570)is also engaged in the AI data center cooling solutions business.