Business
Gentherm and Modine’s Performance Technologies Business to Combine, Establishing a Scaled Leader in Thermal Management Solutions
Expands Gentherm’s portfolio with highly complementary thermal management products and engineering capabilities, creating strong commercial opportunities in
About this update from Gentherm Inc
[{"type":"text","content":"Expands Gentherm’s portfolio with highly complementary thermal management products and engineering capabilities, creating strong commercial opportunities in attractive end markets including power generation, commercial vehicles, and heavy-duty equipmentCreates a compelling and more balanced financial profile for the combined company including lower light vehicle exposure, greater scale, substantial synergies, and a balance sheet with capacity to invest in future growthReverse Morris Trust transaction valued at ~$1.0 billion,1 ~6.8x post-synergy adjusted EBITDA2,3,4 with Modine and Gentherm shareholders expected to own 40% and 60% of the combined company, respectively Accelerates the transformation of Modine’s portfolio to create a pure-play climate solutions company with highly engineered, mission-critical thermal management solutions, focused on high-growth, high-margin businesses for sustainable returns Gentherm to host conference call at 8:00 AM ET today; Modine to host conference call at 9:15 AM ET today NOVI, Mich. and RACINE, Wis., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Gentherm (NASDAQ: THRM), a global market leader of innovative thermal management and pneumatic comfort technologies, and Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today announced that they have entered into a definitive agreement whereby Modine will spin-off and simultaneously combine its Performance Technologies business (“Modine Performance Technologies” or “SpinCo”) with Gentherm in a Reverse Morris Trust (RMT) transaction that is intended to be tax-free for Modine and Modine shareholders for U.S. federal income tax purposes.The transaction will establish Gentherm as a scaled leader in thermal management solutions and expand its technologies and capabilities in precision flow management. It will enable the combined company to serve attractive end markets including power generation; commercial, heavy-duty, and light vehicle; and medical. The combined company expects to realize significant value creation through cost synergies and incremental commercial opportunities including cross-selling, product integration, and entering new global markets. On a pro forma basis the combined company had revenue of $2.6 billion, with an adjusted EBITDA margin of 13% on a synergy-adjusted basis and net leverage of approxima...