Samsung is in talks to buy data-center cooling maker Modine, Bloomberg says

Samsung Electronics is discussing a purchase of data-center cooling maker Modine Manufacturing, Bloomberg reported, sending Modine shares sharply higher. The potential acquisition would put Samsung deeper into the equipment business supporting AI facilities. But the negotiations are not a signed deal: no final decision has been made, and the talks could collapse.

Bloomberg’s David Carnevali and Ryan Gould cited people familiar with the private discussions. Those people said a transaction could come together as soon as the coming weeks, while another suitor could emerge. Representatives for Samsung and Modine declined to comment. No purchase price or transaction terms have been disclosed, leaving the financial terms of any offer unknown.

A stock surge, not a purchase price

Modine shares rose as much as 38% on Friday, according to Bloomberg’s updated report. The move followed an approximately 29% jump in extended trading on November 12. That after-hours reaction took the stock to $136.90, from a regular-session close of $106.10, according to 24/7 Wall St.

At Thursday’s close, Modine had a stock-market value of about $5.6 billion. That figure describes the company’s equity value before the report, not a price Samsung has agreed to pay. With no offer terms disclosed, the trading reaction provides no confirmed measure of the premium a buyer might offer shareholders.

Cooling gives Samsung another route into AI facilities

The industrial logic starts with heat. As AI chips become more densely packed, cooling their equipment becomes more demanding, pushing data-center operators toward liquid cooling. Modine would give Samsung direct supply relationships with major U.S. cloud operators, often called hyperscalers. The attraction is therefore both equipment and an established route to customers building large computing facilities.

Samsung has already pursued cooling through acquisitions. In May 2025, it agreed to buy Germany’s FlaktGroup for €1.5 billion. A Modine purchase would follow that earlier agreement, rather than mark Samsung’s first attempt to build a cooling business. The earlier transaction is relevant history, not confirmation that the current negotiations will produce another acquisition.

Modine itself is now more focused on cooling. On October 1, 2026, it spun off its Performance Technologies unit and merged that business with Gentherm. Its fiscal second-quarter data-center sales show the scale of the remaining opportunity, while quarterly orders exceeded $1 billion for the first time.

$439.7 millionFiscal second-quarter revenue

Data Centers revenue increased 95% from a year earlier, according to the financial results described by 24/7 Wall St.

Rapid growth comes with a cash bill

The sales growth has not removed pressure on profitability. Modine’s adjusted earnings were $1.35 per share, below the $1.52 estimate cited by 24/7 Wall St. Gross margin—the share of sales left after production costs—fell 1.6 percentage points to 20.7%, as material, component and tariff costs increased.

Free cash flow was negative $140.6 million as Modine built inventory and added capacity. That connects the growth story to a concrete spending burden: serving more demand requires money before the expanded business delivers cash. A buyer would be acquiring those capacity needs alongside the customer relationships and rising data-center sales.

On November 4, Modine CEO Neil Brinker said demand “far exceeds our capacity.” That leaves a practical challenge for Modine under any owner: turning strong demand into equipment it can deliver, while paying for the expansion.