Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, announced today it has signed a definitive asset purchase agreement to acquire privately-held Geofinity Manufacturing of Surrey, British Columbia. This acquisition will provide Modine with a full line of innovative geothermal heat pumps in both water-to-water and water-to-air models. The deal is expected to close by mid-summer, 2012, and is subject to customary closing conditions. The terms of the deal were not disclosed.
Since its founding, Geofinity has emerged as a technology leader of residential and commercial geothermal heat pump systems. Their geothermal expertise in the research and development of intricate products and controls systems is evidenced by their recent 2012 AHR Innovation Award in the Building Automation Category for the “ORB” Heat Pump Controller.
Geofinity extends Modine’s current geothermal heat pump product range beyond school-only applications to a wider market, one which has grown at a rate of nearly 15% annually, according to Tom Marry, Modine Executive Vice President and Chief Operating Officer.
“Acquiring Geofinity helps us expand our offerings to the growing commercial HVAC business while extending our focus on the residential market,” Marry said. “We have seen – and expect more – growth from our Commercial Products Group and this acquisition will help us build further on this success.”
With a focus on the residential market, Geofinity offers Modine an excellent opportunity to expand their distributed-product offerings to an established customer base.
“The Modine brand is trusted by distributors, engineers, contractors and end users within the commercial HVAC market,” said Matt McBurney, Vice President Commercial Products Group. “Quality. History. Value. Efficiency. We see Geofinity as an extension of our well-established ideals to these same customers, with an added emphasis on the residential market. As such, we will be well positioned to take advantage of the increasing shift to geothermal solutions.”