Acquisition provides modular heat pump chillers and condensing units that complement Modine's existing indoor air quality line focused on the North American K-12 school market

RACINE, Wis., July 6, 2023 /PRNewswire/ -- Modine (NYSE:MOD), a diversified global leader in innovative thermal management and ventilation solutions, announced today that it acquired Napps Technology, a manufacturer of air- and water-cooled chillers, condensing units and heat pumps for the K-12 school market and other similar applications. This acquisition is in line with Modine's growth strategy to provide differentiated technologies and systems that help customers address real-world concerns, such as improving indoor air quality in schools.

"Since announcing our transformation initiatives last year, we have said that acquisitions would be a key part of our growth strategy," said Neil Brinker, President and Chief Executive Officer of Modine. "Acquiring Napps Technology is in line with our transformation to focus on innovative, engineered solutions that expand our technology portfolio, and furthers our purpose of engineering a cleaner, healthier world. We are excited to demonstrate that Modine is doing what we committed: investing in markets with strong tailwinds that advance our product and technology strategies and help us achieve our long-term margin targets."

Modine currently serves the approximately $2 billion North American chiller market with large chillers targeting the data center market. The acquisition of Napps Technology allows Modine to enhance its offerings to the K-12 school market, while also enabling Modine to serve a broader range of customers and end markets seeking small tonnage chillers and chillers with heat pumps. Modine expects to generate between $6 million to $8 million in revenue this year from the acquisition and forecasts doubling that within two years.

"Technologies that improve indoor air quality are more important than ever, especially in schools," said Jake Feldman, Vice President and General Manager of Modine's Indoor Air Quality business. "Napps Technology's modular, heat pump chillers perfectly complement our existing portfolio of indoor air quality technologies and equip us to meet a broader range of customer needs in the K-12 school market and beyond," said Feldman.

Modine also announced that it will continue to manufacture in Longview, Texas, and that Sam Neale, current president of Napps Technology, will join Modine. Jake Feldman continued, "Sam has done an outstanding job building the Jetson brand and diversifying Napps Technology's product and customer base over the last five years. We're thrilled to have him join Modine."

"Modine is a leader in providing quality, innovative heating and cooling solutions. We're proud to become part of Modine and look forward to continuing to provide trusted systems that improve indoor air quality." said Sam Neale.

About Modine

At Modine, we are Engineering a Cleaner, Healthier World™. Building on more than 100 years of excellence in thermal management, we provide trusted systems and solutions that improve air quality and conserve natural resources. More than 11,000 employees are at work in every corner of the globe, delivering the solutions our customers need, where they need them. Our Climate Solutions and Performance Technologies segments support our purpose by improving air quality, reducing energy and water consumption, lowering harmful emissions and enabling cleaner running vehicles and environmentally-friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe and Asia. For more information about Modine, visit www.modine.com.

Investor Contact: Kathleen Powers; kathleen.t.powers@modine.com; (262) 636-1687

Media Contact: pr@modine.com

Forward-Looking Statements

This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended March 31, 2023 and under Forward-Looking Statements in Item 7 of Part II of that same report. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation, rising energy costs, along with supply chain challenges or supplier constraints, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, increases in interest rates or tightening of the credit markets, recession, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties about the impact of regulatory and/or policy changes, including those related to tax and trade, the COVID-19 pandemic, the military conflict in Ukraine and other matters, that have been or may be implemented in the U.S. or abroad; the impact of the COVID-19 pandemic on the national and global economy, our business, suppliers, customers, and employees; the overall health and pricing focus of our customers; our ability to successfully execute our strategic and operational plans, including applying 80/20 principles to our business; our ability to effectively and efficiently modify our cost structure in response to sales volume increases or decreases and complete restructuring activities and realize benefits thereon; our ability to fund our global liquidity requirements efficiently and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of program launches, unexpected volume increases or decreases, and product transfers; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; the nature of and Modine's significant exposure to the vehicular industry and the dependence of this industry on the health of the economy; our ability to recruit and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any forward-looking statements.

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SOURCE Modine

Modine Acquires Napps Technology, Expanding Product Offering in Strategic Indoor Air Quality Markets