German technology group Bosch has agreed to buy Johnson Controls’ and Hitachi’s residential ventilation businesses for about $8 billion. This is Bosch’s biggest acquisition so far. Bosch said the deal will add Johnson’s heating, ventilation, and air conditioning (HVAC) business for homes and small businesses to its Bosch Home Comfort unit.
This will increase the unit’s sales from 5 billion euros ($5.5 billion) to 9 billion euros ($9.8 billion). The transaction is Bosch’s largest ever and will almost double its home comfort business to €9 billion ($9.8 billion) from €5 billion in sales. The deal includes 16 production sites and 12 development sites across more than 30 countries.
“With this deal, we will achieve a leading global market position in heating, ventilation, and air conditioning,” said Bosch CEO Stefan Hartung. “It also strengthens our presence in the US and Asia and balances our company divisions.”
Bosch expects the global market for heat pumps, ventilation, and air conditioning systems to grow by 40% by 2030. Johnson Controls will receive $6.7 billion in cash from the deal. The sale includes Johnson’s North America ducted business and its residential joint venture with Japan’s Hitachi.
The transaction, which also includes some ductless HVAC production sites in Shimizu, Japan, is valued at $8.1 billion overall. Other companies, including Lennox International and Samsung Electronics, were also interested in buying the Johnson Controls assets.
Bosch, founded in 1886 by Robert Bosch, is a leading global supplier of technology and services. The company operates in four main sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Known for its innovation and quality, Bosch employs over 400,000 associates worldwide and invests heavily in research and development to drive forward advancements in various fields.
The company is committed to improving quality of life through innovative products and services, focusing on sustainability and energy efficiency. Bosch’s products range from automotive components and power tools to home appliances and industrial machinery.
