German technology supplier, Bosch, plans to acquire the global HVAC solutions business from Johnson Controls and Hitachi. This move is expected to double Bosch’s sales revenue in the HVAC market to approximately €9bn. The biggest acquisition in Bosch’s history, this step is part of their strategy for 2030 to strengthen their presence in the U.S. and Asia and to provide innovative, energy-efficient solutions. The acquisition is subject to approval from antitrust authorities and is expected to be completed within 12 months.
- Bosch acquires the global HVAC solutions business for residential and light commercial buildings from Johnson Controls, including the Johnson Controls-Hitachi Air Conditioning joint venture, in a deal worth $8bn.
- The acquisition will nearly double Bosch’s Home Comfort Group sales revenue from €5bn to €9bn, expanding its presence in the U.S. and Asia with a workforce of over 26,000 employees.
- Bosch aims to provide innovative, energy-efficient HVAC solutions to mitigate global warming, move towards alternative energy sources, and strengthen its position in the growing HVAC market, expecting a 40% market growth by 2030.
A Major Leap Forward in the HVAC Market
In a bold move, Bosch has purchased the global HVAC solutions business for residential and light commercial buildings from Johnson Controls. This venture, the biggest in Bosch’s history, will bolster its presence in the U.S and Asia, and is set to double the company’s sales revenue from 5 billion euros to a whopping 9 billion euros.
Strategic Growth and Expansion
This acquisition is part of Bosch’s 2030 strategy to achieve a globally leading position in the promising HVAC market. “As the biggest acquisition in Bosch history, this is an important milestone in the systematic implementation of our strategy for 2030,” says Stefan Hartung, chairman of the board of management of Robert Bosch GmbH.
“We are dynamically pushing ahead with the strong development of Bosch, and will achieve a globally leading position in the promising HVAC market with this acquisition,” Hartung added.
Bosch’s deputy chairman Christian Fischer shared his optimism about the venture, stating that the acquired entities will significantly strengthen Bosch’s Home Comfort business and consequently become part of Bosch’s core business.
Investing in Energy-Efficient Solutions
The acquisition also aligns with Bosch’s commitment to mitigating global warming and the shift to alternative energy sources. The company plans to provide innovative, energy-efficient solutions that will help the world transition away from fossil fuels.
Johnson Controls CEO George Oliver expressed his confidence in Bosch’s leadership and believes that the acquired business will continue to excel under their guidance. Hitachi’s Jun Abe also welcomed the partnership with Bosch, considering it an essential step towards expanding the global air-conditioning business.
Final Thoughts
This acquisition marks a big step in Bosch’s pursuit of becoming a global leader in the HVAC market. By integrating the acquired businesses into its Home Comfort Group, Bosch will be poised to seize the vast opportunities offered by the market. It will be interesting to see how Bosch leverages its newly expanded portfolio to drive growth and innovation in the HVAC market.
FAQs
Q: What is the significance of Bosch’s acquisition of the residential and light commercial HVAC business from Johnson Controls and Hitachi?
A: The acquisition is the biggest in Bosch’s history, doubling its Home Comfort business revenue to approximately 9 billion euros and strengthening its presence in the U.S. and Asia.
Q: How will the acquisition benefit Bosch and its customers?
A: The acquired entities will enhance Bosch’s offerings in the HVAC market, allowing the company to provide innovative, energy-efficient solutions for mitigating global warming and transitioning to alternative energy sources.
Q: What are the key details of the acquisition deal between Bosch, Johnson Controls, and Hitachi?
A: Bosch plans to take over the global HVAC solutions business for residential and light commercial buildings from Johnson Controls, including acquiring the Johnson Controls-Hitachi Air Conditioning joint venture. The acquisition is expected to close within 12 months.
Q: How will the acquired businesses be integrated into Bosch’s operations?
A: The acquired businesses will become part of Bosch’s core business, specifically the Home Comfort Group, leading to an increase in the workforce to over 26,000 employees and a more comprehensive portfolio at the interface between heating and cooling.
Q: What are the strategic growth initiatives behind this acquisition?
A: Bosch aims to double its sales revenue in the HVAC market, capitalising on the expected 40% growth in the global HVAC market by 2030. The company plans to leverage technological progress, climate change efforts, and new regulations to drive growth.
Q: How will the acquisition impact Bosch’s position in the HVAC market?
A: The acquisition will strengthen Bosch’s position in the HVAC market, especially in air conditioning, heat pumps, and heat pump-hybrid solutions. By expanding its portfolio and global presence, Bosch aims to lead in energy efficiency and provide enhanced comfort solutions.
