NEW YORK, Jan 30, 2026, 14:54 EST — During the regular session
- Modine shares jumped almost 6% in afternoon trading following the announcement that it will spin off and merge its Performance Technologies unit with Gentherm
- Modine would emerge as a “pure-play” climate solutions firm, zeroing in on data centers and commercial HVAC, thanks to the tax-free setup
- Modine’s quarterly results, due after the close on Feb. 4, are also drawing investor attention
Modine Manufacturing (MOD) shares jumped 5.8% to $187.00 Friday afternoon following the announcement of a deal to spin off a large portion of its business and merge it with auto-technology supplier Gentherm.
This shift is significant since Modine has been promoted more and more as a data-center cooling specialist, and Friday’s announcement cements that direction. It also gives shareholders a second, independently traded share linked to vehicle and power-generation thermal management.
Modine plans to spin off its Performance Technologies unit and merge it with Gentherm (THRM) through a Reverse Morris Trust. This setup allows companies to execute tax-free separations by merging a spun-off business with another company.
The deal is pegged at roughly $1.0 billion, with Modine anticipating a $210 million cash payout before the spin-off. Modine’s shareholders will get about 21 million new Gentherm shares valued near $790 million, according to the companies. They forecast $25 million in yearly cost synergies and confirmed Modine will retain its Climate Solutions unit, which targets data centers along with commercial HVAC and refrigeration. (SEC)
Modine CEO Neil Brinker described the move as “a significant next step” toward transforming the company into a focused climate-solutions firm. Gentherm CEO Bill Presley added that the deal broadens Gentherm’s thermal management offerings to include sectors like power generation and heavy-duty equipment. (SEC)
Modine shareholders are focused on what the “new Modine” will deliver in terms of margins and growth after the split wraps up — and how fast it can put capital to work on capacity and acquisitions in cooling, now that it’s shedding the cash flow and cyclicality tied to its other businesses.
The deal won’t wrap up overnight. Filings indicate it needs Gentherm shareholder approval and regulatory green lights. The companies also plan to submit more paperwork, including a Form S-4 and an information statement related to the spin. (SEC)
Traders are eyeing Modine’s upcoming earnings report for clues on demand from hyperscale and colocation clients, along with updates on pricing and lead times amid rising competition among suppliers targeting data-center spending.
Modine plans to release its earnings for the quarter ending Dec. 31 after the market closes on Feb. 4. A conference call will follow on Feb. 5, MarketBeat reports. (MarketBeat)
Investors are also on the lookout for the initial formal timeline on financing the spin, along with the expected shareholder vote schedule at Gentherm. Any updated targets from management as they kick off the separation process will be closely watched.
