Samsung to acquire FläktGroup in €1.5bn deal

Samsung Electronics has agreed to acquire FläktGroup, a Germany-based heating and cooling specialist, in a deal worth €1.5bn ($1.68bn).

The deal is a strategic move by Samsung to boost its presence in the growing global applied heating, ventilation, and air conditioning (HVAC) market, with focus on cooling solutions for data centres.

FläktGroup boasts more than 100 years of technological expertise and design capabilities in the HVAC sector.

The company offers a wide array of products and solutions, catering to various customer needs. These solutions are crucial for buildings and facilities such as data centres, museums, airports, and hospitals, where reliable and efficient temperature and humidity control are essential.

FläktGroup’s data centre solutions include liquid cooling and air cooling products. These products have been instrumental in helping customers reduce energy consumption and achieve lower carbon footprints.

The company's customer base extends beyond data centres, with over 60 large clients across sectors such as biotechnology, gigafactories, among others.

Samsung Electronics Device eXperience (DX) Division acting head TM Roh said: “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.”

Samsung anticipates that the acquisition will support sustained growth, driven by increasing data centre demand due to advancements in generative AI, robotics, autonomous driving, and XR technologies.

Moreover, the integration of Samsung’s building integration control solution (b.IoT) with FläktGroup’s HVAC control solution (FläktEdge) is expected to offer a comprehensive suite of HVAC and building energy control systems, potentially expanding Samsung's service and maintenance business.

The transaction is expected for completion by the end of 2025.

FläktGroup CEO Trevor Young said: “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.”

Last year, Samsung formed a joint venture with Lennox International to strengthen its North American HVAC market presence, combining Lennox's distribution channels with Samsung's sales network.