Samsung makes biggest acquisition in 8 years with $1.7b FlaktGroup deal
Samsung Electronics announced Wednesday that it has signed an agreement to acquire FlaktGroup, a German heating and cooling solutions provider, for 1.5 billion euros ($1.7 billion), marking its largest overseas acquisition in eight years.
The tech giant said it will acquire 100 percent of the shares in the heating, ventilation and air conditioning company from European investment firm Triton, aiming to strengthen its HVAC business amid rapid market growth.
It is Samsung's first multibillion dollar deal since acquiring Harman, a company specializing in automotive electronics and audio, in 2017.
"Through the acquisition of FlaktGroup, an applied HVAC specialist, Samsung Electronics has laid the foundation to become a leader in the global HVAC business, offering a full range of solutions to our customers," said Roh Tae-moon, acting head of the Device eXperience Division at Samsung Electronics.
"Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine."
Samsung aims to complete the transaction within the year.
Based in Herne, Germany, FlaktGroup boasts over a century of technological expertise and design capabilities, offering customized HVAC products and solutions for a broad range of clients.
The company supplies high-efficiency, high-reliability HVAC systems to mission-critical facilities such as data centers requiring stable cooling, museums and libraries preserving sensitive artifacts, airports with high passenger volumes, and hospitals where hygiene and precise environmental control are essential.
'We are extremely pleased that FlaktGroup has become a part of Samsung Electronics,' said FlaktGroup CEO Trevor Young.
'As a global top-tier HVAC specialist with over a century of expertise, we have been trusted by large international clients for our technological and product innovations. With Samsung Electronics' global business foundation and investment, we expect to accelerate our growth even further.'
FlaktGroup also provides industry-leading liquid and air cooling products for large-scale data centers, an area with high entry barriers due to the need for global supply capabilities and customized solutions. The company received the DCS Cooling Innovation of the Year Award last year in recognition of its technological leadership.
According to market research cited by Samsung, the applied HVAC market is projected to grow from $61 billion in 2024 to $99 billion by 2030, with an annual growth rate of 8 percent. The data center cooling market is expected to grow even faster, at 18 percent annually.
Samsung has been actively expanding its HVAC business in response to surging demand from data centers, fueled by the rise of technologies such as generative AI, autonomous driving and augmented reality.
In May last year, Samsung established a joint venture with Lennox International to bolster its presence in the North American HVAC market, integrating Lennox's distribution channels with its own.
Looking ahead, Samsung plans to offer a full suite of HVAC and building energy management systems by combining its building integration solutions with FlaktGroup's advanced HVAC control technologies. It also aims to expand its service and maintenance business in the global HVAC sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
2 days ago
- Korea Herald
Lee to dispatch special envoys to Poland, Vietnam, Australia, Germany
President Lee Jae Myung will dispatch special envoys to Poland, Vietnam, Australia and Germany to deliver personal letters and discuss ways to expand bilateral cooperation, the presidential office said Friday. The envoys will depart consecutively starting Sunday and will meet with key officials in each country to convey Lee's message and explore opportunities to enhance friendly and cooperative ties, according to presidential spokesperson Kang Yu-jung. The delegation to Poland, comprised of Reps. Park Jie-won, Eeo Ki-kyu and Jin Sun-mee of the ruling Democratic Party, will leave on Sunday for a five-day visit. During their stay, they plan to meet with government and parliamentary officials to review the growing defense industry cooperation between the two nations and discuss ways to further develop their strategic partnership, Kang said. The Vietnam delegation will be led by former lawmaker Lee In-ki and include two additional DP lawmakers and will depart on Monday. The group will deliver Seoul's commitment to strengthening the comprehensive strategic partnership between the countries and will hold wide-ranging discussions on expanding practical cooperation particularly in infrastructure and energy. Former National Assembly Speaker Kim Jin-pyo will lead the Australian delegation, which is scheduled to leave on Monday for a four-day trip. The delegation will engage with Australian officials to discuss defense and defense industry ties, trade and supply chains and energy cooperation. The delegation to Germany will be headed by Lee Seog-yeon, a former minister of government legislation, and will depart on Wednesday. They plan to meet with German government officials to explore deeper cooperation in key sectors, such as manufacturing, digital transformation and artificial intelligence, as well as to exchange views on regional and global affairs. (Yonhap)
Korea Herald
2 days ago
- Korea Herald
Seoul shares up for 3rd day amid US tariff uncertainties; won sharply down
Seoul shares closed slightly higher Friday, extending their winning streak to a third day, as investors kept a close eye on the ongoing tariff negotiations between South Korea and the United States, which is expected to have a huge impact on the economy. The Korean won lost ground against the US dollar. The benchmark Korea Composite Stock Price Index added 5.6 points, or 0.18 percent, to close at 3,196.05. Trade volume was moderate at 385.7 million shares worth 9.8 trillion won ($7.1 billion), with losers outnumbering winners 504 to 370. Foreigners and institutions bought shares worth 268.9 billion won and 110.4 billion won, respectively, while retail investors unloaded 461.3 billion won. Overnight, Wall Street closed mixed, with the tech-heavy Nasdaq composite and the S&P 500 up 0.18 percent and 0.07 percent, respectively, while the Dow Jones Industrial Average shed 0.7 percent. Investors were paying close attention to whether Seoul will also strike a trade deal with Washington following Japan as Korea's top trade officials met with US Commerce Secretary Howard Lutnick in the US capital on Thursday (local time). In the meeting, the two sides reaffirmed their commitment to striking a trade deal before the Aug. 1 deadline and agreed to soon hold an additional round of negotiations, according to the Seoul government. "The market appears to have been relieved on news that Korea's industry minister and trade minister met with Lutnick, but the KOSPI showed limited growth due to persisting uncertainties ahead of the looming negotiation deadline," Lee Kyoung-min, an analyst at Daishin Securities, said. In Seoul, tech giant Samsung Electronics edged down 0.15 percent to 65,900 won, while its chipmaking rival SK hynix lost 1.3 percent to 266,000 won. Leading battery maker LG Energy Solution shed 1.22 percent, reflecting Tesla's 8.2 percent slide overnight. Bio shares also lost ground, with Samsung Biologics falling more than 2 percent to 1.06 million won and Celltrion down 1.33 percent to 178,000 won. Top automaker Hyundai Motor went down 0.46 percent to 216,500 won and its sister Kia retreated 0.86 percent to 104,100 won as they both posted a decrease in operating profits in the second quarter mainly due to the effects of 25 percent tariffs on all imported cars imposed by the Donald Trump administration. On the other hand, financial and shipbuilding shares delivered strong performances. KB Financial climbed 1.37 percent to 118,800 won and Shinhan Financial advanced 2.74 percent to 71,200 won. Major shipbuilder HD Hyundai Heavy soared 5.83 percent to 444,500 won, and its rival Hanwha Ocean gained 1.35 percent to 90,000 won on expectations for cooperation in the sector with the US Internet portal operator Naver also jumped 3.3 percent to 234,500 won, while Kakao Pay, the fintech arm of Kakao, shot up 10.71 percent on massive purchases by global investment bank Goldman Sachs. The local currency was quoted at 1,377.9 won against the US dollar at 3:30 p.m., down 10.7 won from the previous session. (Yonhap)
Korea Herald
3 days ago
- Korea Herald
Samsung's new foldables hit selves, with preorders at all-time high
Samsung Electronics on Friday began sales of its latest foldable smartphones — the Galaxy Z Flip7 and Z Fold7 — along with the Galaxy Watch8 series in Korea. The new foldable phones garnered record-breaking domestic preorders, reaching 1.04 million units during the seven-day preorder period that ended Monday. The figure surpasses the previous record held by the Z Flip5 and Z Fold5 models by 20,000 units, marking the highest preorder sales in the history of Galaxy foldables. Compared to last year's Galaxy Z Flip6 and Fold6 models, which sold 910,000 units in preorders, this year's preorder volume rose by about 14.29 percent. The sales proportion between the two models stood at 6-to-4 in favor of the Z Fold7, marking the first time since the launch of the Galaxy foldable lineup in 2019 that the Fold has outsold the Flip in preorders. The Galaxy Z Fold7 is Samsung's thinnest and lightest foldable to date, measuring just 8.9 millimeters when folded and 4.2 millimeters when unfolded, with a weight of 215 grams. The Galaxy Z Flip7 enhances portability and usability with its compact, one-hand-friendly size and a 4.1-inch cover display featuring ultra-slim 1.25mm bezels. The Galaxy Watch8 series also features notable upgrades, including the dynamic lug system designed for enhanced wrist movement, an upgraded running coach and a vascular stress monitoring function during sleep. The tech giant said that more than half of the customers who purchased the new foldables on Samsung's official online store were in their teens, 20s and 30s, highlighting growing popularity among younger consumers. 'The Galaxy Z Flip7 and Z Fold7 represent the culmination of our foldable technology with their most refined, slim form factors yet,' a Samsung Electronics official said. 'We invite users to experience the next leap in design and performance through our strengthened Galaxy ecosystem.'
