Racine-based Modine on Wednesday announced that it has signed an agreement to sell three of its businesses based in Germany to affiliates of California-based private equity firm Regent LP.
The businesses, located in Neuenkirchen, Pliezhausen and Wackersdorf, manufacture exhaust gas recirculation coolers, radiators and charge air cooler modules for automotive internal combustion engine applications in
Europe. In fiscal year 2023, the combined revenue from the businesses was between
$80 million and $90 million.
The sale is expected to be completed in the next few weeks pending regulatory approval.
"The sale of these businesses is in line with our strategy to focus our resources on high-margin technologies with strong growth drivers," said
Neil Brinker, president and chief executive officer of Modine. "These businesses produce and service non-strategic parts for internal combustion diesel and gasoline engines in the European automotive market. Coming on the heels of Modine's acquisition of Napps Technology, the divestiture of these businesses represents our continued commitment to focus on innovative, engineered solutions that help us achieve our long-term margin targets and furthers our purpose of engineering a cleaner, healthier world."
"We've been clear that Modine's priorities for its vehicular businesses are to focus on the most value-added technologies and systems, while rationalizing non-strategic product lines," said
Adrian I. Peace, Modine president, performance technologies. "Exhaust gas recirculation coolers, radiators and charge air cooler modules for automotive internal combustion engines in
Europe were not in line with our focus on investing in product lines and systems with strong tailwinds. We will continue to serve key end markets with our world-class technologies for years to come."
