Samsung Electronics announced that it has signed an agreement to acquire all shares of FläktGroup, a leading global HVAC solutions provider, for €1.5 billion from European investment firm Triton. With the global applied HVAC market experiencing rapid growth, this deal enhances Samsung’s commitment to expanding and strengthening its HVAC business.
FläktGroup, which is based in Herne, Germany, has over a century of accumulated technological expertise and design capabilities, providing 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, such as data centers 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 center market globally, FläktGroup secured high customer satisfaction through its product performance, reliability and service support, achieving substantial revenue growth over the past three years. And FläktGroup’s data center 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.
Along with 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.
In its acquisition of FläktGroup, Samsung anticipates sustained growth in data center demand due to the proliferation of generative AI, robotics, autonomous driving, XR and other technologies. And Samsung’s building integration control solution (b.IoT) and FläktGroup’s HVAC control solution (FläktEdge) will provide 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 an emphasis on ductless systems, which supply general and system air conditioners to residential and commercial buildings. And 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.
KEY QUOTES:
“Through the acquisition of FläktGroup, 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. Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine.”
TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung Electronics
“We are extremely pleased that FläktGroup has become a part of Samsung Electronics. FläktGroup, as a global top-tier HVAC specialist with over a century of expertise, has been relied on by global large clients for its technological and product innovations. Now, with Samsung Electronics’ global business foundation and investment, we expect to further accelerate our growth.”
Trevor Young, CEO of FläktGroup
