Latest news with #FläktGroup
Irish Times
27-05-2025
- Business
- Irish Times
German deal points to value in Kingspan's work with data centres
Reports over the weekend that artificial intelligence (AI) group OpenAI's latest ChatGPT has been caught ignoring human instructions to shut down may be the stuff of apocalyptic nightmares. Yet the AI genie is well out of the bottle at this stage. McKinsey , the management consultancy firm, estimated in a recent report that $6.7 trillion (€5.9 trillion) will need to be spent on data centres globally by 2030, driven by demand for hubs equipped to handle AI processing loads. AI demand alone will require $5.2 billion of data centres investment, it said. One Dublin-listed company that should be a major play for investors in this trend is Kingspan , analysts say. The Cavan-based group's data solutions division, which designs and makes raised access flooring, structural ceilings, and airflow solutions for data centres, saw its trading profit jump more than 50 per cent last year to almost €78 million to make up 8.6 per cent of total profits. READ MORE Goodbody Stockbrokers analyst Shane Carberry estimates the unit's profits could grow by more than 30 per cent in 2025. He said in a note to clients in recent days that the division is on track to deliver €200 million in trading profits by 2027, a fourfold increase on 2023. Carberry said a deal struck earlier this month – Samsung Electronics's agreement to buy German heating, ventilation and air-conditioning provider to data centres, FläktGroup – points to some serious value in Kingspan's data solutions business. He reckons the unit could be worth €4.25 billion, based off the value of the FläktGroup and its estimated earnings. That equates to about a third of Kingspan's current market value. The €4.25 billion valuation implied by the German deal suggests the market is applying a 'gross undervaluation' to the wider group, based off consensus earnings estimates for 2027. 'The data centre 'boom' is no secret and it is clear that companies like Samsung Electronics are trying to take advantage but having to pay hefty multiples to do so,' he said. 'We believe that few are better placed than Kingspan to capitalise on this mega trend.' Still, stock market investors remain cautious for now – with the stock down 17 per cent over the past 12 months, compared with a 13 per cent advance by the Iseq All-Share index – amid concerns about the wider global economy.
Yahoo
20-05-2025
- Business
- Yahoo
Samsung to acquire cooling systems provider FläktGroup to meet data center demand
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Samsung Electronics last week announced it signed a deal to acquire Germany-based FläktGroup, a heating and cooling systems provider that services data centers and other buildings and facilities. The electronics giant agreed to spend 1.5 billion euros ($1.7 billion) on FläktGroup to expand and bolster its heating, ventilation and air conditioning business, as the artificial intelligence boom spurs data center growth around the world. The deal, expected to close later this year, would be one of Samsung's largest in recent years. It has agreed to buy FläktGroup from owner and European investment firm Triton. Well known for its televisions, smart phones and appliances, Samsung is also looking to become a leader in the global HVAC market after struggling to sell micro chips. Despite record sales in the first quarter of 2025, Samsung grappled with semiconductor headwinds, citing export controls on AI chips and deferred customer demand ahead of the release of its new high-bandwidth memory chips. The company has been under heightened pressure from shareholders after failing to capitalize on the AI boom in the last year, Reuters reported. As a result, Samsung's stock has been relatively weak and the company is pursuing growth efforts, stock repurchasing and other ways to increase its share price. CFO and EVP Soon-Cheol Park said during Samsung's Q1 earnings call on April 29 that the company is 'continuously exploring strategies' to improve its cash holdings to enhance shareholder value and pursue mergers and acquisitions opportunities. Samsung's audio business, Harman, signed a deal to acquire Masimo's Sound United portfolio earlier this month for $350 million. The FläktGroup acquisition would be Samsung's largest in the past eight years. FläktGroup, founded in 2016 as the result of a merger between DencoHappel and Fläkt Woods, generated revenues of 650 million euros in 2022, according to Triton. In 2023, it reported a 41% growth in earnings year over year with a positive outlook for 2024. 'Now, with Samsung Electronics' global business foundation and investment, we expect to further accelerate our growth,' Trevor Young, CEO of FläktGroup, said in a statement. FläktGroup is a supplier of heating and cooling systems used in data centers, museums and libraries, airports and hospitals for climate control, according to the company. Through its latest agreement, Samsung has 'laid the foundation' to become a global leader in heating and air, TM Roh, president and head of its mobile experience business, said in a statement. The non-residential HVAC market is forecast to grow from $61 billion in 2024 to $99 billion in 2030, according to Samsung, citing market research data. That would be an annual growth rate of 8%. Meanwhile, the data center cooling market is expected to grow at a rate of 18%. 'Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine,' Roh said. Last year, Samsung formed a joint venture with Lennox to sell ductless systems in the U.S. and Canada, strengthening its position in North American markets. It has also made investments in robotics, medical technology and consumer audio to advance its current offerings and stay abreast of emerging trends. Recommended Reading Trump wants to end the 'horrible, horrible' CHIPS Act. It's not that simple. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
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 ( 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. In March 2025, Samsung partnered with Amazon Web Services to showcase the application of AI in radio access networks. "Samsung to acquire FläktGroup in €1.5bn deal" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Mayor
14-05-2025
- Business
- Business Mayor
Samsung Electronics to acquire heating and cooling solutions provider FläktGroup for 1.5 billion euros
A Samsung Group flag flutters in front of the company's Seocho building in Seoul. Sopa Images | Lightrocket | Getty Images Samsung Electronics on Wednesday announced that it would acquire all shares of German-based FläktGroup, a leading heating and cooling solutions provider, for 1.5 billion euros ($1.68 billion) from European investment firm Triton. Samsung said the acquisition would help it expand in the heating, ventilation and air conditioning business as the market experiences rapid growth. 'Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine,' said TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung Electronics. The acquisition of FläktGroup stands to bolster Samsung's position in the HVAC market against rivals such as LG Electronics. FläktGroup supplies heating, HVAC solutions to a wide range of buildings and facilities, notably data centers which require a high degree of stable cooling. Samsung said it anticipates sustained growth in data center demand due to the proliferation of generative AI, robotics, autonomous driving and other technologies. FläktGroup has more 60 major customers, including leading pharmaceutical companies, biotech and food and beverage firms, and gigafactories, according to Samsung's statement. Samsung said in March that its HVAC solutions had achieved double-digit annual revenue growth over the past five years, and that the company aimed to boost revenue by more than 30% in 2025. Samsung's acquisition and focus on HVAC comes amid struggles in other business segments, resulting in weak earnings and sagging share prices in recent quarters. The company has been falling behind rival SK Hynix that has positioned itself better to take advantage of AI-led demand. Samsung has also faced stiff competition from TSMC in its contract chipmaking business, as well as from Apple and Chinese smartphone rivals in recent years. In March, Samsung co-CEO Han Jong-hee reportedly apologized to shareholders and said the company was looking to pursue 'meaningful' mergers and acquisitions to drive growth.
CNBC
14-05-2025
- Business
- CNBC
Samsung Electronics to acquire heating and cooling solutions provider FläktGroup for 1.5 billion euros
Samsung Electronics on Wednesday announced that it would acquire all shares of German-based FläktGroup, a leading heating and cooling solutions provider, for 1.5 billion euros ($1.68 billion) from European investment firm Triton. Samsung said the acquisition would reinforce its commitment to its heating, ventilation and air conditioning business as the market experiences rapid growth. "Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine," said TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung Electronics. The acquisition of FläktGroup stands to bolster Samsung's position in the HVAC market against rivals such as LG Electronics. FläktGroup supplies heating, HVAC solutions to a wide range of buildings and facilities, notably data centers which require a high degree of stable cooling. Samsung said it anticipates sustained growth in data center demand due to the proliferation of generative AI, robotics, autonomous driving, XR, and other technologies. FläktGroup has more 60 major customers, including leading pharmaceutical companies, biotech and food and beverage firms, and gigafactories, according to Samsung's statement. Samsung said in March that its HVAC solutions have achieved double-digit annual revenue growth over the past five years, and that the company aims to boost revenue by more than 30% in 2025.
