**Samsung Acquires Germany’s FlaktGroup, Expanding Global HVAC Business**
Samsung Electronics has acquired FlaktGroup, a European heating, ventilation, and air conditioning (HVAC) company, for $1.5 billion (approximately 2.3 trillion won). This acquisition is seen as a response to the growing demand for cooling systems, driven by the AI data center investment boom, leading to rapid growth in the global HVAC market. The industry anticipates that Samsung Electronics will continue to accelerate mergers and acquisitions (M&A) to secure future business competitiveness, with recent large deals such as through its subsidiary, Harman.
On May 14, Samsung Electronics announced the purchase of Germany’s HVAC specialist company, FlaktGroup, from British investment firm Triton Investment Advisors LLP for $1.5 billion. FlaktGroup is considered the largest HVAC company in Europe, offering efficient cooling solutions across various sectors, including data centers, factory cleanrooms, and industrial and residential buildings. This acquisition marks Samsung’s largest M&A deal since acquiring Harman, an automotive and audio company, for $8 billion in 2017.
FlaktGroup was formed in 2016 when Triton acquired Sweden’s HVAC company FlaktWoods, which has a history of over 100 years. Triton expanded FlaktGroup by merging it with DencoHappel, an HVAC company spun off from Germany’s engineering group GEA in the same year. As of 2022, FlaktGroup’s revenue is reported to be around 650 million euros (approximately 1.03 trillion won).
The HVAC market is garnering attention as the demand for energy-efficient cooling devices increases due to the AI data center investment surge. According to market research firm Global Market Insights, the market size is expected to grow from $301.6 billion in 2024 to $545.4 billion in 2034.
Noh Tae-moon, acting head of Samsung Electronics’ Device Experience (DX) division, stated, “By acquiring Flakt, a central air conditioning specialist with significant demand in AI and data centers, Samsung Electronics has set the stage to become a global comprehensive air conditioning company. We plan to continue nurturing the high-growth air conditioning business as a future growth engine.”
Trevor Young, CEO of FlaktGroup, commented, “We are very pleased that Flakt has become part of Samsung Electronics. As a global top-tier HVAC company with over a century of history, FlaktGroup has been beloved by large global customers, and we look forward to accelerating our growth with Samsung Electronics’ global business foundation and investment.”
Samsung Electronics has been acquiring companies related to future growth industries, such as robotics (Rainbow Robotics) and automotive and home audio (Masimo audio division), since last year. The company intends to complete the Flakt acquisition process within this year.