Samsung Electronics has signed an agreement to acquire all shares of FläktGroup, a leading global HVAC solutions provider, for $US1.67 billion from European investment firm Triton.
With the global applied HVAC market experiencing rapid growth, the acquisition reinforces Samsung’s commitment to expanding and strengthening its HVAC business.
Acting head of the Device eXperience (DX) Division at Samsung Electronics, TM Roh, said through the acquisition Samsung Electronics has laid the foundation to become a leader in the global HVAC business, offering a full range of solutions to customers.
“Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine,” he said.
FläktGroup, based in Herne, Germany, has over a century of accumulated technological expertise and design capabilities, offering diverse products and solutions tailored to each customer.
FläktGroup supplies high-reliability and high-efficiency HVAC systems to a wide range of buildings and facilities, including data centres that require stable cooling, museums and libraries managing sensitive historical artifacts, airports and terminals with high foot traffic, and large hospitals where hygiene, temperature and humidity control are critically important.
In the large-scale data centre market globally, FläktGroup has secured high customer satisfaction through its product performance, reliability and service support, achieving substantial revenue growth over the past three years.
FläktGroup’s data centre solutions include its industry-leading liquid cooling and air cooling products, which have enabled customers to reduce energy consumption, contributing to achieving lower carbon footprint goals.
Commenting on the acquisition FläktGroup CEO, Trevor Young, said the company can accelerate growth.
In addition to data centers, FläktGroup has secured a diverse portfolio of over 60 large customers, including leading pharmaceutical companies, biotech and food and beverage firms, and gigafactories.
Samsung anticipates sustained growth in data centre demand due to the proliferation of generative AI, robotics, autonomous driving, XR and other technologies.
In addition, Samsung’s building integration control solution (b.IoT) and FläktGroup’s HVAC control solution (FläktEdge) will offer a full suite of HVAC and building energy control systems, through which the company expects an expansion of its service and maintenance business.
Samsung has been expanding its HVAC business with a focus on ductless systems, which supply general and system air conditioners to residential and commercial buildings.
In May 2024, Samsung formed a joint venture with Lennox International Inc. to strengthen its position in the North America HVAC market and added Lennox’s distribution channels to the company’s own sales channels.
The transaction is expected to close within 2025.