Samsung Electronics Co. has announced its acquisition of FlaktGroup Holding GmbH, a German ventilation company, for 1.5 billion euros (approximately US$1.68 billion). This marks Samsung’s most significant takeover in nearly eight years, following its $8 billion acquisition of Harman International in 2017.
The South Korean tech giant confirmed the deal with Triton, a European investment firm, to purchase a 100% stake in FlaktGroup. Headquartered in Herne, western Germany, FlaktGroup specialises in energy-efficient heating, ventilation, and air-conditioning (HVAC) solutions for diverse applications, including data centres, airports, museums, and commercial buildings.
Roh Tae-moon, acting head of the device division at Samsung Electronics, expressed confidence in the strategic move. “Through the acquisition of FlaktGroup, an applied HVAC specialist, Samsung Electronics has laid the foundation to become a leader in the global HVAC business, offering a full range of solutions to our customers,” he said. “Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine.”
The acquisition aligns with Samsung Electronics’ broader strategy to secure growth in emerging sectors, including HVAC, robotics, medical technology, and consumer audio. The global HVAC market is expected to expand significantly from $61 billion in 2024 to $99 billion by 2030, at an annual growth rate of 8%. This surge is driven by increased demand for energy-efficient systems and data centre solutions, propelled by the rise of generative AI, robotics, and autonomous technologies.
Samsung aims to strengthen its service and maintenance offerings by integrating its building management systems with FlaktGroup’s HVAC control technologies. This combination is expected to deliver a comprehensive suite of energy management tools, enhancing Samsung’s capacity to serve a broader customer base.
The acquisition builds on Samsung’s recent initiatives to expand its HVAC business, particularly in ductless systems for residential and commercial applications. In May 2024, Samsung Electronics formed a joint venture with Lennox International Inc. to strengthen its HVAC presence in North America.
By acquiring FlaktGroup, Samsung Electronics takes a decisive step towards establishing itself as a global leader in HVAC solutions, positioning the company to capitalise on the sector’s robust growth and evolving technological landscape.
-Yonhap
