Samsung in Talks to Buy Modine: Price, Shares & What It Means for AI Data Centres
Samsung is in talks to buy US cooling maker Modine in a deal worth about $5.6 billion, as AI data centres drive demand for thermal management systems.
Image: Wikimedia Commons / Daoducquan, CC BY-SA 4.0
RACINE, Wis., Nov. 13 — Samsung Electronics is in talks to acquire Modine Manufacturing, a Wisconsin maker of cooling systems for data centres, in a deal that would give the South Korean group a second foothold in AI server cooling. The talks were reported on Thursday, citing people familiar with the matter, and Modine shares jumped about 28 percent after hours.
The deal could come together within weeks, according to the report. No final decision has been made, the talks could fall apart, and another buyer could emerge. Spokespeople for both companies declined to comment.
Key Takeaways
- Samsung is in talks to buy Modine Manufacturing, a US data-centre cooling specialist.
- Modine shares rose about 28 percent after hours, lifting its value to about $5.6 billion.
- Modine's Data Centers sales jumped 95 percent to $439.7 million last quarter, with over $1 billion in orders.
- Samsung bought German cooling group FläktGroup for 1.5 billion euros in 2025.
How Much Would Samsung Pay for Modine?
No price or premium has been reported. Modine was worth about $5.6 billion at Thursday's close, and its shares jumped about 28 percent after hours once the talks were reported, topping $135. Any agreed price would be set against that level.
The shares had fallen about 15 percent since Nov. 3 results that underwhelmed investors. Data Centers sales rose 95 percent to $439.7 million, but the segment's gross margin fell 470 basis points to 19.7 percent on higher costs, and the stock dropped 21 percent the next day.
Why Samsung Wants Modine's Data Centre Cooling Business
As AI data centres draw more power and generate more heat, cooling now decides computing performance and operating costs. Modine's Data Centers sales reached $439.7 million in the quarter ended Sept. 30, up from $225.0 million a year earlier. It booked more than $1 billion in orders, a fourth straight record.
Samsung has already moved in this direction. In November 2025 it completed the purchase of FläktGroup, Europe's largest heating, ventilation and air-conditioning company, for 1.5 billion euros. In September, six Samsung affiliates agreed to invest $1 billion in Helix Digital Infrastructure, an AI infrastructure company set up by US firm KKR. A Modine purchase would give Samsung a US-listed cooling business in North America, where most hyperscale spending is concentrated, as Google's $17 billion Wyoming data-centre purchase showed.
What Happens Next in the Samsung-Modine Talks
The talks are at an early stage and may not lead to a deal. No final decision has been made, the talks could fall apart, and another suitor could emerge. Any agreement would need approval from Modine's board and shareholders, and a foreign takeover of a US company would probably face a US regulatory review.
Modine has also asked shareholders to approve changing its name to Modexus Solutions at a special meeting on Friday, according to company filings, following the Oct. 1 spin-off of its vehicle and industrial cooling business. For the full year, Modine raised its outlook to sales of $3.1 billion to $3.2 billion, with Data Centers revenue projected to grow 80 to 90 percent.
| Modine at a glance | Figure |
|---|---|
| Market value | About $5.6 billion |
| Share price | $106.10 |
| After-hours move | Up about 28% |
| Data Centers sales, Q2 | $439.7 million, up 95% |
| Total net sales, Q2 | $994.4 million, up 35% |
| Data Centers orders, Q2 | More than $1 billion |
| Fiscal 2027 sales outlook | $3.1 billion to $3.2 billion |
Frequently Asked Questions
Is Samsung buying Modine?
Not yet. Samsung is in talks to acquire Modine, according to a report citing people familiar with the matter. No final decision has been made, and neither company has confirmed the talks.
How much is Modine worth?
Modine was worth about $5.6 billion at Thursday's close in New York, when its shares finished at $106.10. The shares jumped about 28 percent after hours once the talks were reported.
Why did Modine shares jump after the Samsung report?
Investors bid the shares up on the prospect of a takeover premium, after the stock had fallen about 15 percent since Nov. 3 earnings that disappointed on margins.
What does Modine make for AI data centres?
Modine makes thermal management and cooling systems for data centres and commercial buildings, including its Airedale-branded products. Its Data Centers segment serves hyperscale customers in North America, the same market Google's latest AI chips are built for.
Modine holds its shareholder meeting on Friday to vote on the name change, and its Analyst and Investor Day is set for Nov. 18. Neither company has commented on the talks.
