International.
The company specializing in thermal management solutions, Modine Manufacturing Company, confirmed the completion of its previously disclosed agreement for the purchase of Luvata's Heat Transfer Solutions (HTS) business.
The agreement to acquire the company had already been announced on September 6, 2016. The purchase price was approximately US$418 million.
Luvata HTS' product offering encompasses a wide range of heat exchanger coils and commercial refrigerators and industrial chillers, complemented by anti-corrosion coating solutions. For the last twelve months ended September 30, 2016, Luvata HTS had net sales of $549 million and EBITDA of $55 million.
The company expects to achieve annual cost synergies of at least $15 million in the first three to four years, particularly through the continued optimization of manufacturing and procurement organizations and cost structures. Additional revenue synergies will be generated through the sale of Luvata HTS products to Modine's broad customer base and in the use of the Luvata HTS sales team to sell the Modine coil and other products to the Luvata HTS customer base.
