German engineering giant Bosch has announced plans for its largest acquisition ever, with the company set to purchase the global HVAC solutions business for residential and light commercial buildings from Johnson Controls in a deal valued at $8 billion.
The acquisition is expected to be closed in approximately 12 months.
Chairman at Robert Bosch GmbH Stefan Hartung called the deal “an important milestone” in the company’s strategy for growing its Energy and Building Technology business sector. The acquisition nearly doubles Bosch’s sales in the HVAC market to around 9 billion euros.
As part of this transaction, Bosch also intends to acquire Johnson Controls-Hitachi Air Conditioning (JCH) joint venture, including Hitachi’s 40 percent stake. This brings over 12,000 employees and 16 manufacturing sites in more than 30 countries under Bosch’s ownership.
Bosch plans to combine the acquired businesses into its existing Home Comfort Group. This will create a global HVAC leader with over 26,000 staff and a portfolio spanning heating, cooling, air quality and home climate control solutions.
“As the biggest acquisition in Bosch history, this is an important milestone in the systematic implementation of our strategy for 2030,” says Stefan Hartung. “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. In taking this step, moreover, we will strengthen our presence in the U.S. 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.”
