Samsung Electronics said it would purchase all shares of FläktGroup, a leading heating and cooling solutions provider based in Germany, from Triton, an investment firm in Europe, for 1.5 billion euros or $1.68 billion.
Samsung said the acquisition would enable it to expand its heating, ventilation, and air conditioning business as the market grows rapidly.
Our priority will be to keep investing in and pursuing the high-growth HVAC business as an important future growth driver,” notes TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung Electronics.
The acquisition of FläktGroup will strengthen Samsung’s position in the HVAC market vis-à-vis competitors such as LG Electronics.
FläktGroup provides heating and HVAC solutions to many buildings and structures, especially data centres that need a high level of stable cooling. Samsung said it expects long-term expansion of demand for the data centre business as generative AI, robotics, autonomous driving, and other technologies spread.
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FläktGroup has more than 60 key customers, including leading pharmaceutical companies, biotech and food and beverage companies, and gigafactories, as stipulated by the statement from Samsung.
In March, Samsung said that the company’s HVAC solutions had recorded double-digit annual revenue growth over the past five years and planned to increase revenue by more than 30 per cent in 2025.
HVAC acquisition and Samsung’s decisions to focus on it are happening when its struggles occur in other business segments, with weak earnings and sagging share prices registered in recent periods.
Samsung has also been fiercely challenged in the last few years by TSMC, Apple, and Chinese smartphone rivals in its contract chipmaking business.
In March, Samsung co-CEO Han Jong-hee reportedly apologised to shareholders and said the company was looking to pursue “meaningful” mergers and acquisitions to drive growth.
