Modine Signs Agreement to Sell AIAC Air Conditioning South Africa (Pty) Ltd to Existing Management Team

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Jun 11, 2018, 10:30 ET

RACINE, Wis., June 11, 2018 /PRNewswire/ -- Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, has signed an agreement to sell its South African business operation, AIAC Air Conditioning South Africa (Pty) Ltd, to the current management team, headed by Andrew Koeslag.

With its base in Johannesburg, South Africa, AIAC Air Conditioning South Africa (Pty) Ltd focuses on the manufacture of precision air conditioning systems. Over the years, the business has served a range of customers across several sectors, including banking and telecoms, predominantly in South Africa. FY2017 sales for this business were just under $3 million USD.

"As we continue to strategically shape the make-up of our Building HVAC group, at Modine, we feel the local South African market will be best served by a business with complete local ownership," said Scott Miller, Vice President – Building HVAC. Under the new ownership, the business will have increased opportunities to develop a broader product line to remain locally competitive while bidding for government and parastatal projects.

Additionally, Miller commented, "We believe that the new business has the opportunity to experience growth dynamics by way of local, private ownership with the ability and clear path to competitively shape itself for the requirements of the market. Modine would like to thank all of the South African employees and wishes them continued success in the future."

Andrew Koeslag, owner of the newly formed AIACSA (Pty) Ltd added, "We are excited to continue the manufacture of quality and efficient products here in South Africa, supporting the economy and providing local employment. The purchase will allow us greater market accessibility; we cannot wait to deliver our solutions and services to new and existing customers."

About Modine

Modine, with fiscal 2018 revenues of $2.1 billion, specializes in thermal management systems and components, bringing highly engineered heating and cooling components, original equipment products, and systems to diversified global markets through its three complementary business units: Vehicular Thermal Solutions (VTS); Commercial & Industrial Solutions (CIS); and Building HVAC Systems (BHVAC). Modine is a global company headquartered in Racine, Wisconsin (USA), with operations in North America, South America, Europe, Asia, and Africa. For more information about Modine, visit www.modine.com.