By Kwanwoo Jun
Samsung Electronics has agreed to buy Germany's FlaktGroup in what would be the South Korean company's biggest acquisition in eight years.
Samsung said Wednesday that it would acquire the German heating, ventilation and air-conditioning product maker from European investment firm Triton for 1.5 billion euros, equivalent to $1.68 billion.
The deal, due to close by the end of 2025, would be the largest acquisition for Samsung since 2017, when it completed a $8 billion deal to buy Harman International Industries, according to Samsung officials.
The deal for FlaktGroup "has laid the foundation to become a leader in the global HVAC business," partly fueled by strong demand for cooling products at data centers amid the artificial-intelligence boom, said TM Roh, acting head of Samsung's consumer electronics and smartphone unit, in a statement.
Last May, Samsung launched a joint venture with U.S. HVAC company Lennox International, expanding its presence in the North American market.
The applied HVAC market is projected to grow at an annual pace of 8% to $99 billion by 2030, while the market for data-center cooling products is estimated to expand 18% annually, Samsung said, citing market research.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
05-13-25 2221ET
