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Robert Bosch has agreed to acquire the heating and air-conditioning operations from Johnson Controls International and Hitachi for $8.1 billion. This acquisition marks the largest deal in Bosch’s history and aligns with the German conglomerate’s strategic expansion plans.
The transaction involves Bosch taking over the heating, ventilation, and air conditioning (HVAC) operations for residential and light commercial buildings from Johnson Controls, as well as the air-conditioning joint venture between Johnson Controls and Hitachi. This bold move will nearly double Bosch’s global sales in the HVAC market to approximately €9 billion ($9.80 billion).
Jan Brockmann, president of Bosch’s home comfort business, expressed optimism about the acquisition. “With our successful heating technology in Europe, we already have a strong team and a sound foundation. Now is the right time for a bold step toward a global presence. Demand for air-conditioning solutions is growing especially fast,” Brockmann stated.
Bosch’s extensive operations span consumer goods, mobility, industrial, energy, and building technology. The latest acquisitions will provide the company with critical exposure to the U.S. and Asian markets, which are projected to see a 40% growth in the HVAC sector by the end of the decade. The businesses Bosch is acquiring recorded sales of approximately €4 billion last year.
The deal includes 16 manufacturing sites and 12 engineering locations across more than 30 countries, with around 12,000 employees transitioning to Bosch. Notable brands such as York and Coleman in the U.S., and Hitachi in Asia—covered under a long-term license agreement—are also part of the acquisition.
Johnson Controls stands to gain approximately $6.7 billion from this transaction, which it believes will significantly streamline its portfolio. Bosch, on the other hand, will integrate these new operations into its home comfort business, bringing its total employee count in this sector to over 26,000.
The completion of the deal, which is subject to approval from antitrust officials, is anticipated within a year.
Source: The Wall Street Journal
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