Bosch has announced the acquisition of the heating, ventilation, and air conditioning (HVAC) divisions of Johnson Controls and Hitachi for $8.1 billion. This move marks the largest transaction in Bosch's history and is aimed at expanding its footprint in the United States and Asia.

The acquisition includes Johnson Controls' HVAC division, which focuses on residential and light commercial buildings, along with the joint venture between Johnson Controls and Hitachi in the air conditioning sector. Through this deal, Bosch will gain control of 16 manufacturing plants and 12 engineering sites across more than 30 countries. Approximately 12,000 employees from these divisions will join Bosch as part of the transaction.

Bosch operates across various sectors, including consumer goods, industrial technology, energy, and building solutions. The company expects this acquisition to significantly enhance its position in the HVAC market, particularly in the US and Asia. As a result, Bosch's global HVAC market revenues are projected to nearly double, reaching around €9 billion.

The global market for heat pumps, ventilation, and air conditioning is anticipated to grow substantially by 2030. Bosch forecasts a 40 per cent increase in this market, driven primarily by 50 per cent growth in the US and around 30 per cent growth in Europe. This acquisition positions Bosch to capitalise on these growth trends by leveraging the acquired manufacturing and engineering capabilities, along with an expanded workforce.

With this strategic move, Bosch aims to strengthen its competitive edge, meet rising demand for advanced HVAC solutions, and enhance its global market presence in the heating and air conditioning industry.

News source: Deloitte