Samsung Electronics Completes Acquisition of FlaktGroup, Accelerates Global HVAC Business Expansion

Aggressively Targeting the Rapidly Growing Global HVAC Market
Expanding from Individual to Centralized HVAC Solutions
Significantly Strengthening B2B Business Competitiveness
Developing HVAC Solutions Leveraging FlaktGroup's Core Infrastructure
Synergy Through Integration of Samsung and FlaktGroup Products and Services
Meeting Large-Scale HVAC Demand for AI Data Centers and More

On November 6, Samsung Electronics announced that it has completed the acquisition process of FlaktGroup, the largest HVAC company in Europe, based in Germany. This comes six months after the company began acquisition procedures by signing a contract in May to purchase 100% of FlaktGroup shares held by the UK-based private equity fund Triton for 1.5 billion euros (approximately 2.4835 trillion won).

Samsung Electronics stated that, leveraging this acquisition, it plans to expand its business in the rapidly growing global HVAC market and actively foster it as a future growth engine. According to market research and consulting firm Research Nester, the global HVAC market surpassed 240.91 billion dollars (about 347 trillion won) this year and is expected to expand to more than 452.22 billion dollars (about 651 trillion won) by 2035.

FlaktGroup, with over 100 years of history and technological expertise, has supplied central air conditioning and precision cooling solutions for data centers, large commercial facilities, and hospitals in Europe and global markets. The company holds the top position in the European central HVAC market with a 12.2% market share. Its sales reached 680 million euros (approximately 1.1258 trillion won) in 2023 and 730 million euros (about 1.2086 trillion won) last year. In particular, FlaktGroup boasts more than 10 global production bases and an extensive sales and service network spanning Europe, the Americas, the Middle East, and Asia. The company also operates subsidiaries such as Woods, which provides ventilation and fire safety systems for tunnels, ships, and the defense industry; SEMCO, which specializes in air conditioning and flow solutions; and SE-Electronic, an automation-based building control company. Recently, FlaktGroup has been developing and supplying equipment and solutions for AI data centers, covering both air and liquid cooling, in collaboration with leading global data center companies. The company is also participating in the 'Stargate' program, a global mega-scale AI infrastructure construction project.

Samsung Electronics plans to utilize FlaktGroup's core infrastructure and network, including its production and sales bases, to develop HVAC solutions and gradually combine the two companies' products and services to maximize synergy. The company believes that adding synergy with FlaktGroup to its existing strength in individual HVAC solutions will significantly enhance its B2B business competitiveness in the central HVAC market for various industries, large buildings, and the rapidly growing data center sector. In addition, by integrating FlaktGroup's high-precision HVAC control systems with Samsung Electronics' AI-based building integrated control platform (SmartThings Pro and b.IoT), the company expects to explore new business opportunities in the smart building and energy efficiency sectors.

Samsung Electronics also plans to actively respond to the rapidly growing demand for large-scale data center HVAC solutions in Korea, driven by surging needs in AI computing, cloud, and telecommunications. The company expects that leveraging FlaktGroup's differentiated products and brand competitiveness will help it become a top-tier supplier in the next-generation data center sector. Samsung Electronics also aims to expand its sales and service capabilities in global markets such as North America and Europe, where there is strong demand for industrial HVAC solutions in factories, hospitals, and bio facilities, by utilizing FlaktGroup's regionally established supply chain.

Noh Taemoon, President and Head of the DX Division at Samsung Electronics, stated, "The acquisition of FlaktGroup is a strategic decision for Samsung Electronics to lead the global HVAC market and provide innovative solutions to customers. By combining FlaktGroup's technological capabilities with Samsung Electronics' AI platform, we will move forward as an industry-leading company in the global HVAC market." Trevor Young, CEO of FlaktGroup, said, "This will further accelerate FlaktGroup's global market expansion and technological innovation. The collaboration between the two companies will be a significant turning point in the development of future-oriented HVAC solutions."

Samsung Electronics announced that even after the acquisition, it will maintain the FlaktGroup brand and allow the existing management and employees to operate as an independent subsidiary, thereby preserving FlaktGroup's expertise and brand identity in the HVAC sector. Meanwhile, last year, Samsung Electronics also established a joint venture with Lennox, a leading HVAC company in the United States, to target the North American HVAC market.