[Edaily Reporter JAEMIN SONG ] SamsungElectronics is accelerating the expansion of its heating, ventilation, and air conditioning (HVAC) business by pursuing the acquisition of U.S.-based data center cooling company Modine Manufacturing, following its acquisition of Germany’s Flakt Group. Amid slowing growth in its existing core businesses, such as TVs and home appliances, the company is pursuing a strategy to cultivate HVAC as a new growth engine through a series of major mergers and acquisitions (M&A). In particular, the company plans to secure a foothold in the cooling demand for artificial intelligence (AI) data centers to create a breakthrough in its business-to-business (B2B) operations.

According to industry sources on the 15th, Bloomberg reported that SamsungElectronics is in negotiations to acquire Modine and could reach an agreement as early as within a few weeks. However, since a final decision has not yet been made, there is still a possibility that the negotiations could fall through. Modine is a thermal management specialist headquartered in Wisconsin, U.S., with a market capitalization of approximately $5.6 billion (about 7.5 trillion won) prior to reports of the acquisition. If the deal goes through, it is expected to be Samsung’s largest M&A transaction since the 2017 acquisition of Harman.

Modine has recently been rapidly expanding its AI data center cooling business. Revenue from its data center division in the second quarter of fiscal year 2027 reached $439.7 million, a 95% increase compared to the same period last year. This growth is driven by increased demand for cooling equipment as AI servers become more powerful and generate more heat. Modin operates production facilities in Texas and Virginia, among other locations, and began manufacturing large-scale data center cooling units at its new Texas plant this month.

SamsungElectronics is eyeing Modin as part of its strategy to strengthen its presence in the North American market. Last year, SamsungElectronics acquired Germany’s Flakt Group for approximately 1.5 billion euros, entering the central air conditioning market for large buildings and data centers. Since then, it has expanded its production lines in India and is currently pursuing a 240 billion won investment in air conditioning production facilities at its Gwangju plant. By adding Modin—which possesses a North American customer network and production capacity—to its portfolio, SamsungElectronics can establish a global business foundation spanning Europe and North America.

These successive M&A deals are also linked to the business restructuring of SamsungElectronics’ Device eXperience (DX) division. As growth in its existing consumer-focused business faces limitations due to stagnant demand and intensifying competition in the TV and home appliance markets, the importance of high-value-added B2B businesses is increasing. Data center HVAC is attracting attention as a new revenue source because it allows for business expansion beyond equipment supply to include follow-up services such as maintenance.

However, the burden of large-scale investment and securing synergies among the acquired companies remain challenges. An industry insider stated, “It appears that SamsungElectronics is cultivating air conditioning as a new growth engine to overcome the growth limitations of its existing home appliance business,” adding, “If it secures Modin following Flact, it will be able to rapidly expand its business footprint in the global market.”