Samsung in Talks to Acquire Data Center Cooling Firm Modine

Samsung Electronics is in talks to acquire Modine Manufacturing, a Wisconsin-based maker of cooling systems for data centers, in a deal that could be announced within weeks, according to people familiar with the matter. Modine closed Thursday at $106.10, a market value of about $5.6 billion.

No final decision has been made and the talks could still fall apart, the people said, asking not to be identified because the information is private. Another suitor could also emerge, they added. Representatives for Samsung and Modine declined to comment.

Modine shares soared to more than $135 in late trading Thursday, a gain of 28%, after the report. The stock had fallen about 15% since Nov 3, when quarterly results underwhelmed investors. Samsung rose as much as 3.9% in Seoul on Friday before paring gains; the stock has surged 72% in 2026, giving the company a market value of about $910 billion.

Why Samsung wants Modine

Samsung is too dependent on its memory business, according to Bloomberg Intelligence analyst Masahiro Wakasugi. While chips generate enormous cash, the group may need growth businesses such as data center assets. Modine would fit that push: the company became a pure-play thermal management business in October after spinning off its automotive unit, and its data center cooling unit has grown 86% annually over the past three fiscal years, according to Bloomberg Intelligence analyst Christina Feehery.

Feehery noted that Modine is seen as a small peer relative to the larger HVAC market, making it an attractive target for vertical integration in AI infrastructure.

Samsung's cooling track record

The deal would be bolder in magnitude, but not Samsung's first move in cooling. The company bought Germany-based FläktGroup, another cooling specialist, for €1.5 billion in 2025. Rivals including Daikin Industries, LG Electronics and Vertiv are also chasing data center thermal demand.

In delayed trading, Modine (MOD) shares were down 0.5% at $106.10. The talks come as M&A picks up around companies serving the booming AI market, with US and overseas rivals stepping up investment and dealmaking in data center infrastructure.