Modine Manufacturing Co. has completed the purchase of Austrian-based Luvata Heat Transfer Solutions, a company that makes commercial and industrial coils, for $418 million.

Racine-based Modine makes thermal management systems and components for global markets. The acquisition agreement was previously announced in September, but the sale has now been finalized. Luvata Heat Transfer Solutions posted net sales of $549 million from Sept. 30, 2015 through Sept. 30, 2016.

Modine bought the company to diversify and grow its business.

“The acquisition of Luvata HTS addresses our Diversify and Grow objectives very clearly and we have no doubt it will further Strengthen Modine as well, as this now-nearly $2B company moves forward with a broad base of earnings, reduced cyclicality and common focus,” said Thomas A. Burke, president and chief executive officer of Modine.

Over the next three to four years, Modine expects to realize $15 million in annual cost synergies “through the ongoing optimization of manufacturing and procurement organizations and cost structures.”It also plans to use Luvata HTS’ sales team to sell Modine’s coil and other products to Luvata HTS’ client base, the press release reads.

Modine plans to rename each of its global businesses, including Luvata HTS.

The new Modine names will be:

  • Commercial and Industrial Solutions (CIS) (previously the Luvata HTS and Modine Coils businesses);
  • Vehicular Thermal Solutions (Modine’s “vehicular” business); and
  • Building HVAC Systems (Modine’s current BHVAC business).

Dennis Appel, president of the former Luvata HTS, will take over the role of vice president, commercial and industrial solutions at Modine.

“Modine is now 10,500 employees strong with an expanded footprint and increased product portfolio.  The combination of Modine and Luvata HTS provides a complete product portfolio as well as agile manufacturing capabilities across the globe, all of which will allow superior response to customer needs,” Burke said. “We will provide consolidated results and updated guidance for fiscal 2017, including the effect of the Luvata HTS transaction, in connection with our third quarter earnings release.”

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Denise Lockwood has an extensive background in traditional and non-traditional media. She has written for Patch.com, the Milwaukee Business Journal, Milwaukee Magazine and the Kenosha News.