Modine jumps 28% as Samsung reportedly weighs a takeover
Modine shares jumped almost 28% on Friday after Bloomberg reported that Samsung is in talks to buy the data center cooling maker, a deal that could come together in the coming weeks.
Samsung in talks to buy Modine, Bloomberg reports
Samsung Electronics is in talks to acquire Modine Manufacturing, a maker of cooling systems for data centers, Bloomberg News reported on Thursday, citing people familiar with the matter. The companies are discussing a potential deal that could come together in the coming weeks, the report said.
Reuters, which reported the Bloomberg account, said it could not immediately verify the report. Neither company has confirmed the talks, and no price for a deal has been reported.
Shares jump almost 28% in a day
Modine shares closed regular trading on Thursday at $106.10, giving the company a market value of about $5.6 billion. On Friday, the stock surged as much as 30.75% to trade at $138.80, Reuters reported, and closed up 27.9% at $135.66, according to Yahoo Finance.
The jump also drew attention to an earlier buyer. Jana Partners built a new position in Modine during the third quarter, the activist investor said on Friday, and owned 287,620 shares at the end of September, according to a regulatory filing. Reuters valued Modine at roughly $7 billion after the jump.
- Thursday close$106.10
- Friday close$135.66, up 27.9%
- Intraday high$138.80, up 30.75%
- Market value before the reportabout $5.6 billion
- Market value after the jumproughly $7 billion
- Jana Partners shares, end of September287,620
- Data Centers sales, latest quarter$439.7 million, up 95%
What Samsung would be buying
Modine, based in Racine, Wisconsin, is a major supplier of thermal management systems for the data center industry, Reuters reported. Its fastest-growing business serves the hyperscalers building data centers, where demand for cooling has risen with the spread of power-hungry AI hardware.
In its second quarter of fiscal 2027, reported on November 3, Modine posted net sales of $994.4 million, up 35% from a year earlier. Data Centers sales reached $439.7 million, up 95% from $225.0 million a year earlier, driven by higher sales to hyperscale customers in North America. Net earnings fell 32% to $30.3 million, including a $29.5 million income tax expense tied to restructuring for the spin-off of its Performance Technologies business, which was completed on October 1. Adjusted EBITDA rose 31% to $136.2 million, and adjusted earnings per share rose 27% to $1.35.
For fiscal 2027, Modine expects net sales of $3.1 billion to $3.2 billion and adjusted EBITDA of $470 million to $500 million for its continuing business.
A rally built on an unconfirmed report
The day's gain rests on a report, not an announced deal. Talks can still fall apart, another bidder can emerge, and the price investors paid on Friday already reflects a takeover premium that may not survive a denial or a long silence from either company.
What to watch next is straightforward: any statement from Samsung or Modine, the terms if a deal is agreed, and Modine's Analyst and Investor Day on November 18, when the company plans to share longer-term revenue and earnings targets. Until then, the move is a reminder of how fast a single headline can reprice a stock — in both directions.
