Samsung is reportedly in talks to acquire Modine as interest in AI cooling grows.
- Samsung is looking to buy Modine to expand its data center cooling business.
- Modine has started producing data center chillers at a new Texas facility with plans to expand further.
- In Q2, Modine’s Data Centers division nearly doubled its revenue to $439 million.
Modine Manufacturing Co. (MOD) stock surged 28% overnight after Samsung Electronics (SSNLF) is reportedly in discussions to acquire the data center cooling specialist. The potential deal could value Modine at around $5.6 billion amid growing interest in companies benefiting from the artificial intelligence (AI) infrastructure boom.
Modine Manufacturing stock has gained 9.8% so far this week and is on track to snap four weeks of losses.
AI Infrastructure Boom Fuels Samsung-Modine Deal Interest
A Bloomberg report said Samsung Electronics is exploring the acquisition of Modine, as the South Korean technology giant looks to strengthen its position in the data center cooling market.
The reported talks imply growing interest in businesses supplying critical infrastructure to AI companies. As firms expand their computing capacity, demand for data center equipment, advanced cooling systems in particular, has created new opportunities for manufacturers and investors.
Why Modine Could Be An Attractive Target
Modine develops heating and cooling equipment for industrial applications, and its data center business has become an important growth driver, supplying temperature-management solutions to large-scale cloud computing operators.
In October, Modine separated its automotive business through a transaction involving Gentherm, allowing it to focus more closely on its cooling and heating operations. On Wednesday, the company began commercial production of Airedale data center cooling systems at its new 682,000-square-foot manufacturing facility in Texas.
The plant will produce 2MW and 3MW chillers designed to cool large data centers and AI computing facilities. Modine plans to expand production to four 2MW manufacturing lines by the end of its fiscal year.
Data Centers Segment Leads Growth For Modine In Q2
Modine’s revenue grew 35% in the second quarter (Q2) of fiscal 2027, driven by strong sales of data center cooling systems and commercial HVAC products. Adjusted EBITDA increased 31% to $136.2 million, while net income dropped 32% to $30.3 million.
Modine’s Data Centers division generated $439.7 million in sales, nearly doubling its revenue from last year. Commercial HVAC revenue grew 23% to $285.5 million, supported by stronger sales of heating, ventilation, coils and coatings products. The company now sees fiscal 2027 revenue growth of 50% to 55%.
MOD Stock: Retail View
On Stocktwits, retail sentiment around the stock turned ‘neutral’ from ‘bearish’.
A user said, “Buyout would have to be much higher close to $200 .”
Another user said, “Was waiting for someone to buy them for awhile. Hoping for a good price ”
MOD stock has declined 20% year-to-date.
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