Samsung Acquires FlaktGroup to Expand Its Presence in Global HVAC Market

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Earlier this month, Samsung acquired Masimo’s audio division for $350 million through its subsidiary Harman. And now, further expanding its large-scale M&A deals, the company today announced that it is acquiring all shares of FlaktGroup, a leading global HVAC solutions provider from Europe. It expects to complete the acquisition process by this year.

Samsung signs $1.68 billion agreement to acquire FlaktGroup

Samsung wants to expand its presence in the rapidly growing HVAC (Heating, Ventilation, and Air Conditioning) market, with a focus on data center cooling solutions. The company recently signed an agreement with FlaktGroup for €1.5 billion ($1.68 billion) to acquire 100% shares, which are currently held by European investment firm Triton. The Korean firm expects this acquisition to help strengthen its HVAC business.

“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,” said TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung Electronics. “Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine.”

German cooling system maker FlaktGroup has over 100 years of experience in technology and design. Its product portfolio includes several HVAC products and solutions tailored to each customer. The company supplies its HVAC systems to a wide range of buildings and facilities, including data centers, to provide a stable cooling solution. It has secured high customer satisfaction in the large-scale data center market thanks to the product performance, reliability, and support system. As a result, the company has seen significant revenue growth over the past three years.

Samsung expects that data center demand will be high in the coming years due to the rapid development of generative AI, robotics, autonomous driving, XR, and other technologies. Some market research firm predicts the applied HVAC market will increase from $61 billion in 2024 to $99 billion by 2030, with an annual growth rate of 8%. When it comes to the data center cooling business segment, early forecasts point to even faster growth with 18% per year.

Written by

Binay Konwar

Binay Konwar started his blogging journey in 2014 and has since written plenty of tech articles. At present, he is working as a News Writer at SammyGuru, covering everything about Samsung. He holds a Master's degree in Mathematics, but his real passion lies in tech and writing. In his free time, he enjoys playing chess and watching movies.

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