Samsung Nears $8 Billion Modine Bid to Cool AI Data Centers

Samsung Electronics is negotiating to pay between $7.5 billion and $8 billion for Modine Manufacturing, the U.S. cooling-equipment maker whose data center revenue nearly doubled last quarter. Foreign media reported the talks on the 13th. An agreement could come as early as this month, though a final deal is far from certain.

What does the reported deal include?

The price estimate assumes a purchase of 100% of Modine. It applies a control premium (an extra amount paid above market value to gain ownership) of roughly 33% to 42% to Modine's market capitalization of $5.64 billion, based on its closing price on the 12th. That is the arithmetic. No term sheet has been disclosed, and neither company has confirmed the negotiations.

Additional bidders could still emerge, the reports noted. Samsung has been here before. In 2024, it joined the bidding for Johnson Controls' air conditioning business, including its U.S. operations, and lost to Germany's Bosch. A signed agreement this month is possible; it is not guaranteed.

Why does the size matter?

If the final price exceeds the roughly $8 billion Samsung paid for Harman in 2017, the Modine transaction would become the largest merger or acquisition in the company's history. The margin for that record is thin. The estimated range tops out almost exactly at the Harman figure. A price near the low end of the range would leave the 2017 deal in first place.

How big is Modine's data center business?

Modine, founded in 1916 and headquartered in Wisconsin, manufactures heating and cooling equipment for industrial and commercial facilities. It has recently built cooling systems for AI data centers into a core business. The numbers explain the appeal:

• Third-quarter revenue from its data center division reached $439.7 million, about 587 billion won, up 95% year over year.
• Revenue for fiscal 2027, covering April 2026 through March 2027, is projected at as much as $3.2 billion, about 4.27 trillion won.

A 95% growth rate commands attention. Projections two fiscal years out are estimates, not orders, and Modine has not published the assumptions behind the $3.2 billion figure.

Is this part of a larger strategy?

Yes, on two fronts. First, geography: the acquisition would push Samsung into the United States, the world's largest data center market. Second, technology: Samsung has previously sought to enter the North American HVAC (heating, ventilation and air conditioning) market through local acquisitions rather than organic growth. The Johnson Controls bid failed; Modine is the second attempt.

The company is also spending on its own capacity. After acquiring German HVAC maker FlaktGroup for 1.5 billion euros last year, Samsung decided this year to invest 240 billion won in a production line for data center cooling equipment at its Gwangju plant.

An industry official said that if the Modine deal goes through, Samsung will have secured manufacturing and sales bases for its data center cooling business in North America as well as Europe. That claim describes footprint, not revenue. The official said nothing about how Samsung would integrate Modine's Wisconsin operations with FlaktGroup's European plants or the Gwangju line.

What remains unsaid?

Three gaps stand out. Neither company has confirmed the talks. No financing structure has been described for a deal of this size. And no timeline exists for regulatory review in the United States, where an acquisition by a foreign buyer of a century-old industrial manufacturer could attract scrutiny.

The reports also leave open whether Samsung would buy 100% of Modine or a smaller stake; the $7.5 billion to $8 billion figure applies only to a full purchase. Until a definitive agreement appears, every number in this story is an estimate built on a premium applied to one day's closing price.