Modine Invests in Liquid Immersion Cooling Technology to Support High-Density Data Center Applications

The investment adds single- and two-phase immersion cooling technologies to Modine's portfolio, further cementing the company's position as a complete cooling solutions provider as data center heat loads rise.

RACINE, Wis., Jan. 2, 2024 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in innovative thermal management solutions, announced today that it had purchased the intellectual property and other specific assets of TMG Core, a specialist in single- and two-phase liquid immersion cooling technology for data centers with high-density computing requirements.

"Modine's investment in liquid immersion cooling technology advances our strategy to expand our global data center product offering and capture market opportunities that help us achieve our long-term growth targets," said Neil Brinker, President and Chief Executive Officer of Modine. "This investment strengthens Modine's position in the rapidly growing data center market, providing our customers with advanced solutions to support high-density, accelerated computing applications, such as generative artificial intelligence, 5G and machine learning."

This investment positions Modine to capture share in the rapidly developing data center liquid cooling market, which analysts forecast to reach $7.8 billion by 2028. Liquid immersion cooling involves submerging IT servers in tanks filled with non-conductive fluid that dissipates the heat generated by the IT load. This process enables increased computing density in a sealed environment and supports reduced energy and water consumption, along with the potential for heat reclaim. Liquid immersion cooling also serves edge data center applications where data processing must be closer to the source to reduce latency, such as in autonomous vehicles.

"Modine's investment in liquid immersion cooling technology expands the innovative solutions our Airedale brand can offer throughout the thermal chain, allowing us to cover air, liquid and hybrid systems," said Eric McGinnis, President, Modine Climate Solutions. "Our customers lean on us to help them solve the heat problem in next-generation, mission-critical IT applications where they need to maximize processing efficiency while complying with increasingly strict emissions and energy efficiency requirements. We look forward to working with our key customers and partners in this increasingly critical area, supplying complete systems with intuitive controls that are manufactured and supported globally."

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 and in the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2023 and September 30, 2023. 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, energy costs, 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 or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the U.S. or abroad, including those related to tax and trade, climate change, COVID-19 or future public health threats, and military conflicts, including the current conflicts in Ukraine and in the Middle East; the overall health and pricing focus of our customers, including impacts associated with the recent United Auto Workers union strikes; our ability to successfully realize anticipated benefits, including improved profit margins and cash flow, from our strategic initiatives and our application of 80/20 principles across our businesses; our ability to accelerate growth organically and through acquisitions and successfully integrate acquired businesses; our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses while also completing restructuring activities and realizing benefits thereof; 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 product or program launches, unexpected volume increases or decreases, product transfers and warranty claims; 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; 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 the increasing emphasis on environmental, social and corporate governance matters; our ability to realize the benefits of deferred tax assets; 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