Bosch, the technology and services provider, continues its rise with a strategic acquisition. For the Building Technology and Energy business sector, the Bosch Group plans to take over the global HVAC division for residential and small commercial buildings from Johnson Controls. As part of this transaction, Bosch also plans to acquire 100 percent of the Johnson Controls – Hitachi Air Conditioning (JCH) joint venture, including Hitachi’s 40 percent stake. Bosch shareholders and the supervisory board have already approved the transaction, and the binding purchase agreements were signed today by the parties involved. The acquisition is now subject to antitrust approvals. The price for the acquired businesses is $8 billion (€7.4 billion) and the acquisition is expected to close in approximately 12 months.
“As the largest acquisition in Bosch’s history, it is an important milestone in the systematic implementation of our strategy for 2030. We are dynamically continuing the strong development of Bosch and with this acquisition we will achieve a leading position on the global market promising HVAC systems,” said Stefan Hartung, Chairman of the Board of Directors of Robert Bosch GmbH. “Furthermore, by taking this step, we will strengthen our presence in the U.S. and Asia and we will ensure a better balance between our business sectors. And this is part of our strategy. In this way, we will open up new opportunities for growth and ensure a firmer foundation for the company as a whole.”
Together with JCH, the businesses that Bosch plans to acquire generated a total sales figure of around €4 billion in 2023 and employ around 12,000 people worldwide. The transaction includes 16 factories and 12 engineering locations in more than 30 countries. The product portfolio covers the full spectrum of HVAC systems for residential and small commercial buildings and includes well-known brands such as York and Coleman in the US. and Hitachi in Asia, for which Bosch will receive a long-term license.
Christian Fischer, Vice Chairman of the Board of Robert Bosch GmbH, who is responsible for the strategic growth initiatives of the Bosch Group and therefore for this planned acquisition, added: “With this acquisition, Bosch will accelerate its growth and almost will double the sales revenue in the HVAC market, reaching approximately 9 billion euros. Together with our future colleagues, we want to take advantage of the huge market opportunities for the further growth of this new division.” The company predicts that the global HVAC market will grow by 40 percent by 2030, given technological progress, the fight against climate change and new regulations. “The acquired businesses will become part of Bosch’s core business, and this will benefit customers, installation partners and employees,” added Fischer. “We have demonstrated many times in the past that we can successfully integrate brands, take them forward through investment and strengthen them.”
Bosch plans to integrate the acquired businesses into the Bosch Home Comfort Group. The 14,600 employees of the existing Bosch Home Comfort group generated sales of approximately 5 billion euros in the year 2023. The Home Comfort group is excellently positioned in the major segments of the heating market, the heat pump market and the market for hybrid pump solutions of heat, which include a heat pump and a fossil fuel thermal plant, for peak loads. Following the transaction, the new facility will have a workforce of more than 26,000 employees and will be able to benefit significantly from economies of scale and a complementary portfolio for the heating and cooling interface.
Jan Brockmann, President of the Bosch Home Comfort Group, said: “With our successful heating technology in Europe, we already have a strong team and a solid foundation. Now is the right time for a bold step towards a global presence, given that the demand for air conditioning solutions is growing very rapidly.”
“In the U.S., for example, Bosch expects growth of more than 50 percent by the end of the decade, and also in Europe, strong growth of around 30 percent is forecast by 2030. Together, we will be able build on strong, well-known brands. We look forward to the opportunity to shape the future of the Bosch Home Comfort Group together with our future colleagues and with the help of their innovations and ideas,” added Brockmann.