Bosch to Acquire Johnson Controls' Global HVAC Business in USD 8 Bn Deal This strategic move will enhance Bosch's presence in the US and Asia, expand its product portfolio, and nearly double its sales revenue in the HVAC sector.
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Bosch is set to expand its energy and building technology sectors through a strategic acquisition. The company plans to acquire Johnson Controls' global HVAC solutions business for residential and light commercial buildings, along with a 100% stake in the Johnson Controls-Hitachi Air Conditioning joint venture, including Hitachi's 40% stake.
The acquisition, valued at USD 8 billion (7.4 billion euros), has been approved by Bosch's shareholders and supervisory board. Binding agreements were signed today and are expected to close within 12 months.
"We are dynamically pushing ahead with the strong development of Bosch and will achieve a globally leading position in the promising HVAC market with this acquisition," said Stefan Hartung, Chairman of the board of management of Robert Bosch GmbH. "In taking this step, moreover, we will strengthen our presence in the US and Asia and achieve a better balance among our business sectors. This is also part of our strategy. In this way, we will open up further growth opportunities and put the company as a whole on a firmer footing."
As per the official release, together with JCH, the businesses Bosch intends to acquire generate sales revenue totaling roughly 4 billion euros in 2023 and employ some 12,000 people worldwide. The transaction covers 16 manufacturing and 12 engineering sites across 30+ countries. The product portfolio covers the entire spectrum of HVAC solutions for residential and light commercial buildings and includes well-known brands such as York and Coleman in the US and Hitachi in Asia, for which Bosch will be granted a long-term license.
Christian Fischer, the Deputy Chairman of the Board of Management of Robert Bosch GmbH, said, "With this acquisition, Bosch will accelerate its growth and nearly double its sales revenue in the HVAC market to roughly 9 billion euros. Together with our future colleagues, we want to seize the huge opportunities offered by the market for the further growth of this new unit."
The company expects the global HVAC market to grow by 40 percent by 2030, driven by technological progress, the fight against climate change, and new regulations.
"The acquired businesses will become part of the Bosch core business, and this will benefit customers, installation partners, and associates," Fischer added.
George Oliver, CEO of Johnson Controls, said, "Our leading residential and light commercial business and its world-class team perfectly complement the Bosch portfolio. We are confident that under Bosch's leadership, the business will continue to excel and deliver innovative products and services to its customers. We look forward to seeing their continued success."
