Samsung Electronics has announced its acquisition of FläktGroup, a German-based provider of advanced heating, ventilation, and air conditioning (HVAC) solutions, for €1.5 billion ($1.68 billion). The deal was made with European investment firm Triton and reflects Samsung’s strategic move to deepen its presence in the fast-growing HVAC market. According to TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung, this acquisition aligns with the company’s broader commitment to invest in new growth engines. Roh emphasized that Samsung views the HVAC sector as a key pillar of future expansion.
FläktGroup is a recognized leader in delivering HVAC technologies across a wide range of sectors, including data centers, which require high-performance cooling infrastructure. Samsung highlighted the critical role HVAC solutions play in supporting emerging industries such as generative AI, robotics, and autonomous vehicles—sectors that are fueling a surge in data center construction worldwide. The acquisition is seen as a move to strengthen Samsung’s competitiveness against rivals such as LG Electronics in the HVAC space.
Samsung noted that FläktGroup serves more than 60 major customers, including prominent pharmaceutical, biotech, and food and beverage companies, as well as manufacturers operating gigafactories. The acquisition provides Samsung with a significant customer base and advanced technologies that complement its existing HVAC offerings.
The company stated in March that its HVAC business has delivered double-digit annual revenue growth over the past five years. Looking ahead, Samsung aims to increase HVAC revenue by more than 30% in 2025. The purchase of FläktGroup is expected to support this target by expanding Samsung’s product portfolio and operational capabilities in the sector.
This strategic move comes as Samsung faces challenges in other areas of its business. The company has experienced declining earnings and underwhelming stock performance in recent quarters, partly due to intensified competition. Samsung has lagged behind SK Hynix in capitalizing on AI-driven semiconductor demand and continues to face stiff competition from TSMC in contract chip manufacturing, as well as from Apple and Chinese firms in the smartphone market.
Earlier this year, co-CEO Han Jong-hee acknowledged these struggles and promised shareholders that Samsung would pursue meaningful mergers and acquisitions to drive future growth. The acquisition of FläktGroup represents a tangible step in that direction.
READ MORE: