Modine Manufacturing Company (NYSE: MOD), a diversified global leader in
thermal management technology and solutions, announced today it has
signed a definitive asset purchase agreement to acquire privately-held
Geofinity Manufacturing of Surrey, British Columbia. This acquisition
will provide Modine with a full line of innovative geothermal heat pumps
in both water-to-water and water-to-air models. The deal is expected to
close by mid-summer, 2012, and is subject to customary closing
conditions. The terms of the deal were not disclosed.
Since its founding, Geofinity has emerged as a technology leader of
residential and commercial geothermal heat pump systems. Their
geothermal expertise in the research and development of intricate
products and controls systems is evidenced by their recent 2012 AHR
Innovation Award in the Building Automation Category for the "ORB" Heat
Geofinity extends Modine's current geothermal heat pump product range
beyond school-only applications to a wider market, one which has grown
at a rate of nearly 15% annually, according to Tom Marry, Modine
Executive Vice President and Chief Operating Officer.
"Acquiring Geofinity helps us expand our offerings to the growing
commercial HVAC business while extending our focus on the residential
market," Marry said. "We have seen - and expect more - growth from our
Commercial Products Group and this acquisition will help us build
further on this success."
With a focus on the residential market, Geofinity offers Modine an
excellent opportunity to expand their distributed-product offerings to
an established customer base.
"The Modine brand is trusted by distributors, engineers, contractors and
end users within the commercial HVAC market," said Matt McBurney, Vice
President Commercial Products Group. "Quality. History. Value.
Efficiency. We see Geofinity as an extension of our well-established
ideals to these same customers, with an added emphasis on the
residential market. As such, we will be well positioned to take
advantage of the increasing shift to geothermal solutions."
Geofinity products are used in a variety of residential, commercial and
industrial applications, including single-family homes, condominiums,
"Modine has long been committed to improving HVAC efficiency," said
McBurney. "Like the recent introduction of our Atherion packaged
rooftop ventilation system, our newly re-designed SchoolMate XE
geothermal classroom system, or the popular Effinity93 high
efficiency line of gas unit heaters, the Geofinity addition will
continue Modine's dedication to efficiency, offering home owners the
opportunity to reduce their monthly heating and cooling costs by up to
Geothermal applications, such as those offered by Geofinity, harness the
Earth's renewable thermal energy, stored just below the surface, for the
purpose of providing forced air heating and cooling, hot and chilled
water, and dehumidification. The system exchanges the natural heating
and cooling properties of the Earth between a building and the ground.
This transfer of energy is the source of enhanced performance and
provides a significant advantage for the environment. Only a small
amount of electricity is required to capture this energy, move it and
concentrate it into a large amount of "free energy."
"This acquisition presents the opportunity to leverage Modine's strength
and breadth of products with Geofinity's to offer more to our
established network of distributors and applied products experts, and
grow our business," added McBurney.
Modine, with fiscal 2011 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, refrigeration systems, and fuel
cells. The company employs approximately 6,600 people at 29 facilities
worldwide in 15 countries. For more information about Modine, visit www.modine.com.
For more information about Modine's Commercial Products Group, visit www.modinehvac.com.
Modine Manufacturing Company
Kathleen T. Powers