In a move that’s got the business world buzzing, Bosch is set to snag heating and air-conditioning operations from Johnson Controls International and Hitachi in a whopping $8.1 billion deal. This is the biggest move yet for the German conglomerate as it eyes expansion in the U.S. and Asia.
Bosch isn’t just dabbling; it’s diving headfirst into the heating, ventilation, and air conditioning (HVAC) arena. The plan? Take over the HVAC operations for residential and light commercial buildings from Johnson Controls, plus grab the air-conditioning joint venture Johnson Controls has with Japan’s Hitachi.
Bosch’s empire already spans consumer goods, mobility, industrial, energy, and building technology. But this acquisition is set to supercharge its presence in the HVAC market, nearly doubling its global sales to around 9 billion euros ($9.80 billion). With the HVAC market expected to balloon by 40% globally by the decade’s end, Bosch is gearing up for some serious growth.
The deal includes 16 manufacturing sites and 12 engineering locations across more than 30 countries, with roughly 12,000 employees. Bosch is also getting some well-known brands like York and Coleman in the U.S. and Hitachi in Asia, with a long-term license to boot.
On the flip side, Johnson Controls is set to pocket around $6.7 billion from the transaction, streamlining its portfolio in the process. The businesses Bosch is picking up made roughly EUR4 billion in sales last year. Post-deal, Bosch’s home comfort business will have over 26,000 employees. All that’s left is the green light from antitrust officials, and Bosch expects the deal to wrap up in about a year.
(Source: Bosch Press | WSJ)
