14-05-2025
Samsung makes biggest acquisition in 8 years with $1.7b FlaktGroup deal
Tech giant eyes global HVAC leadership by integrating FlaktGroup's expertise with its smart solutions
Samsung Electronics announced Wednesday that it has signed an agreement to acquire FlaktGroup, a German heating and cooling solutions provider, for 1.5 billion euros ($1.7 billion), marking its largest overseas acquisition in eight years.
The tech giant said it will acquire 100 percent of the shares in the heating, ventilation and air conditioning company from European investment firm Triton, aiming to strengthen its HVAC business amid rapid market growth.
It is Samsung's first multibillion dollar deal since acquiring Harman, a company specializing in automotive electronics and audio, in 2017.
"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," said Roh Tae-moon, acting head of the Device eXperience Division at Samsung Electronics.
"Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine."
Samsung aims to complete the transaction within the year.
Based in Herne, Germany, FlaktGroup boasts over a century of technological expertise and design capabilities, offering customized HVAC products and solutions for a broad range of clients.
The company supplies high-efficiency, high-reliability HVAC systems to mission-critical facilities such as data centers requiring stable cooling, museums and libraries preserving sensitive artifacts, airports with high passenger volumes, and hospitals where hygiene and precise environmental control are essential.
'We are extremely pleased that FlaktGroup has become a part of Samsung Electronics,' said FlaktGroup CEO Trevor Young.
'As a global top-tier HVAC specialist with over a century of expertise, we have been trusted by large international clients for our technological and product innovations. With Samsung Electronics' global business foundation and investment, we expect to accelerate our growth even further.'
FlaktGroup also provides industry-leading liquid and air cooling products for large-scale data centers, an area with high entry barriers due to the need for global supply capabilities and customized solutions. The company received the DCS Cooling Innovation of the Year Award last year in recognition of its technological leadership.
According to market research cited by Samsung, the applied HVAC market is projected to grow from $61 billion in 2024 to $99 billion by 2030, with an annual growth rate of 8 percent. The data center cooling market is expected to grow even faster, at 18 percent annually.
Samsung has been actively expanding its HVAC business in response to surging demand from data centers, fueled by the rise of technologies such as generative AI, autonomous driving and augmented reality.
In May last year, Samsung established a joint venture with Lennox International to bolster its presence in the North American HVAC market, integrating Lennox's distribution channels with its own.
Looking ahead, Samsung plans to offer a full suite of HVAC and building energy management systems by combining its building integration solutions with FlaktGroup's advanced HVAC control technologies. It also aims to expand its service and maintenance business in the global HVAC sector.
