Samsung Electronics will acquire the German FläktGroup, Europe’s largest air conditioning equipment firm, marking its full-fledged entry into the rapidly growing global air conditioning market.
On the 14th, Samsung Electronics announced that it signed a contract to acquire 100% of Fläkt’s equity held by the British private equity fund Triton for 1.5 billion euros (about 2.37 trillion won). This is the first time Samsung Electronics has embarked on a trillion-won merger and acquisition since acquiring Harman, its automotive audio subsidiary, in 2017.
Founded in 1918 in Herne, western Germany, Fläkt is a heating, ventilation, and air conditioning (HVAC) company specializing in cooling solutions for data centers, clean rooms in factories, and industrial and residential buildings.
Based on over 100 years of accumulated technological expertise, Fläkt has developed a lineup and design capabilities to supply customized products and solutions tailored to customer needs. It has provided high-quality and highly efficient air conditioning equipment to various facilities, including large data centers requiring stable cooling, museums and libraries managing sensitive books and artifacts, busy airports and terminals, and large hospitals where antimicrobial, temperature, and humidity control are crucial.
Samsung Electronics explained, “As the demand for data centers is expected to continue growing due to the proliferation of generative artificial intelligence (AI), robotics, autonomous driving, and extended reality (XR), we have decisively acquired Fläkt, a top-tier global air conditioning company.” The acquisition process is expected to be completed within this year.
Air conditioning is an industry that controls temperature and humidity to supply optimal air for homes, commercial, and industrial facilities, and global demand is increasing due to global warming and regulations on eco-friendly energy. In particular, the central air conditioning market targeting large facilities such as airports, shopping malls, and factories is predicted to grow at an average annual rate of 8%, from $61 billion (about 86 trillion won) last year to $99 billion (about 140 trillion won) by 2030.
Among these, the data center segment is expected to grow to $44.1 billion (about 62 trillion won) by 2030, with an average annual growth rate of 18%. However, it is a high-barrier industry where global supply experience and the capacity to present optimal designs and solutions are essential.
Through this acquisition, Samsung Electronics expects to expand stable and profitable services and maintenance business by combining its building integrated control solution with Fläkt’s air conditioning control solution.
Samsung Electronics is promoting its air conditioning business with ductless products focused on the home and commercial system air conditioning market. Last May, it established a joint venture with the U.S. air conditioning company Lennox, further strengthening its penetration into the North American air conditioning market by adding Lennox’s sales channels to its existing distribution.
Roh Tae-Moon, acting head of Samsung Electronics' Device Experience (DX) division, said, “By acquiring Fläkt, a central air conditioning specialist with high demand in AI and data centers, Samsung Electronics has laid the foundation to leap to a global comprehensive air conditioning company.” He added, “In the future, we will continue to nurture the air conditioning business, which is expected to grow significantly, as a future growth driver.”
Trevor Young, CEO of Fläkt, expressed, “We are very pleased that Fläkt has become a part of Samsung Electronics,” adding, “As a global top-tier air conditioning company with over 100 years of history, Fläkt, which has received love from large global clients, can now accelerate its growth through Samsung Electronics' global business foundation and investment.”