Bloomberg News reported Thursday that Samsung is exploring a deal for Modine, the Racine, Wisconsin company known for heavy-duty cooling and heating gear for large commercial sites and industrial equipment. Its fastest-growing line serves hyperscalers that construct data centers.
Shares surged 28% to finish at $135.66 on Friday, a move that marked the largest one-day gain since 2020 and boosted Modine's value to $7.2 billion. That rally also clawed back a 15% slide through Thursday after last week's quarterly results left investors underwhelmed.
The report said a transaction could be arranged within weeks, while noting a rival bidder might also appear. Spokespeople for Samsung and Modine would not provide comment. Separately on Friday, Jana Partners, the activist investor, disclosed a roughly 0.5% position in Modine.
The discussions highlight a broader pickup in M&A around suppliers to the fast-growing AI ecosystem. Companies in the US and abroad are increasing investment and dealmaking to chase data center demand, including Samsung's Asian rivals Daikin Industries Ltd and LG Electronics Inc., and US-based Vertiv Holdings Co.
Modine narrowed its focus last October by spinning off its automotive arm to concentrate on thermal management. Samsung, which sells everything from smartphones to memory chips, has been expanding its data center thermal solutions through overseas acquisitions, including last year's purchase of Germany-based FläktGroup Holding GmbH for €1.5 billion, or $1.65 billion.
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In plain English: heat is a bottleneck for AI-scale computing, and the companies that remove it are attracting capital and suitors. The market's reaction to the Modine headlines shows how quickly takeout talk can reprice data center suppliers, even after a disappointing earnings stretch.
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