Wisc. firm acquires CDI; business to stay in Owatonna
An Owatonna business that started in Tom and Sue Peterson’s garage – then grew to a facility that was more than 203,000 square feet – has been sold.
Climate by Design International, which designs and manufactures custom desiccant dehumidifiers and air handlers, was acquired last week by Modine, a business based in Racine, Wis.
The estimated purchase price was about $65 million.
The Petersons, who founded their business in 1989, said on Facebook that joining the Modine family “marks a major milestone for our company as we continue to grow and bring innovative, mission-critical air handling solutions to more industries around the world.”
In 2023, CDI moved to its new headquarters in Owatonna, bringing all of its operations and employees into a single facility, a move described as “streamlining production and distribution while strengthening corporate culture and supporting growth.”
The acquisition won’t change that, the Facebook post says.
“Our amazing team, our purpose-built facility and our commitment to engineering excellence all remain strong as we step into this exciting new chapter,” it says.
CDI employs about 230 people locally.
Modine has been around for more than 100 years.
It’s described as a leader “in designing, engineering, testing, and manufacturing mission-critical thermal solutions,” using technologies to heat, cool, and ventilate the places you go and things you see every day.
“Acquiring CDI advances our strategy to grow our commercial (indoor air quality) business with fit-for-purpose solutions,” said Neil D. Brinker, president and CEO of Modine. “CDI brings deep expertise in desiccant-based dehumidification and a strong reputation for engineering excellence. Combined with our acquisition of Napps in 2023 and Scott Springfield in 2024, CDI’s technology expands Modine’s Commercial IAQ product portfolio to new markets.”
CDI’s specialized technologies provide critical humidity control in low-temperature environments such as pharmaceutical manufacturing and healthcare, filling a gap in Modine’s existing commercial IAQ product portfolio.
The acquisition also gives Modine access to new end markets in food processing, cold storage, battery manufacturing, and ice arenas, and additional manufacturing capacity in the U.S. for air-handling systems.
“We’re focused on delivering HVAC solutions that not only meet today’s performance standards but also anticipate tomorrow’s environmental and operational demands,” said Eric McGinnis, President of Climate Solutions at Modine.
“CDI’s desiccant-based technologies are a powerful addition to our portfolio, enabling us to meet customer needs for precise humidity control and air handling manufacturing capabilities,” he said.
“This acquisition enhances our ability to deliver integrated, high-performance systems to customers in healthcare, industrial, and food processing markets, sectors where Modine is expanding.”