Samsung is in acquisition talks with Modine, say people with knowledge of the matter who requested anonymity because the discussions are private. A deal could be stitched together within the next few weeks, though the same people emphasized that no decision has been finalized and negotiations could still unravel. They also noted a separate suitor could appear.
Modine's stock closed Thursday in New York at $106.10, valuing the company at roughly $5.6 billion. In late trading, shares jumped above $135, a 28% surge. The company had slid about 15% since Nov. 3 after quarterly results left investors unimpressed.
This potential tie up is another sign of rising deal activity around businesses serving the AI buildout. Companies in the US and abroad are pouring more capital into data center infrastructure and pursuing acquisitions to capture that growth. The landscape includes Samsung's regional rivals Daikin Industries Ltd and LG Electronics Inc., along with US-based Vertiv Holdings Co.
Racine, Wisconsin-based Modine makes heavy duty heating and cooling systems for large commercial properties and industrial equipment, and its fastest growing line focuses on hyperscale customers building data centers. In October, Modine separated its automotive arm to concentrate on thermal management. Based in Suwon, South Korea, Samsung has a market value over $900 billion, and its portfolio ranges from computer memory chips to smartphones, televisions, home appliances and thermal solutions.
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Though an acquisition of Modine would be a larger move, Samsung has already broadened its data center thermal portfolio via international transactions, such as last year's acquisition of Germany-based FläktGroup Holding GmbH at a price of €1.5 billion ($1.7 billion). Representatives for both companies declined to comment.
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