Samsung to acquire German ventilation firm FlaktGroup for $1.67B

ISTANBUL

The South Korean tech giant Samsung Electronics announced Wednesday that it agreed to acquire German heating, ventilation, and air conditioning (HVAC) firm FlaktGroup for €1.5 billion ($1.67 billion).

"With the global applied HVAC market experiencing rapid growth, the acquisition reinforces Samsung’s commitment to expanding and strengthening its HVAC business," Samsung said in a statement.

The South Korean firm noted that it plans to "aggressively" expand its presence in the fast-growing HVAC market, with a focus on data center cooling solutions.

“Through the acquisition of FlaktGroup, 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,” said TM Roh, the acting head of the Device eXperience (DX) Division at Samsung Electronics.

“Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine," he added.

The acquisition is expected to be completed this year, which is the largest acquisition of Samsung Electronics in the last eight years.