- Key Points
- 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.
- Samsung said the acquisition would reinforce its commitment to its heating, ventilation, and air conditioning business as the market experiences rapid growth.
A Samsung Group flag flutters in front of Seoul’s Seocho building.
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Samsung Electronics
On Wednesday, it announced that it might gather all shares of German-based FläktGroup, a leading heating and cooling solutions company, for 1.5 billion euros ($1.Sixty eight billion) from European investment organization Triton.
Samsung stated the acquisition might help it extend within the heating, air flow, and air conditioning business because the market reports a rapid boom.
“Our commitment is to continue making an investment in and growing the excessive-growth HVAC business as a key destiny increase engine,” stated 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 opponents such as LG Electronics.
FläktGroup materials heating, HVAC answers to a wide variety of buildings and facilities, significantly data centers which require an excessive degree of strong cooling. Samsung stated it anticipates a sustained boom in the facts middle demand due to the proliferation of generative AI, robotics, self reliant driving, and different technologies.
FläktGroup has more than 60 fundamental clients, which include main pharmaceutical corporations, biotech and food and beverage corporations, and gigafactories, consistent with Samsung’s statement.
Samsung stated in March that its HVAC solutions had executed double-digit annual revenue growth over the last 5 years, and that the agency aimed to reinforce sales using more than 30% in 2025.
Samsung’s acquisition and consciousness on HVAC comes amid struggles in different business segments, resulting in weak earnings and sagging profit margins in the current quarters.
The agency has been trailing its rival SK Hynix for some time. That has positioned itself higher to take advantage of AI-led demand.
In recent years, Samsung has also faced excessive opposition in its contract chipmaking business from TSMC, Apple, and Chinese smartphone rivals. 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.