The deal encompasses 16 manufacturing facilities and 12 engineering sites across over 30 countries.
Bosch intends to acquire the global HVAC solutions business for residential and light commercial buildings from Johnson Controls for USD 8 billion. This acquisition includes taking full ownership of the Johnson Controls-Hitachi Air Conditioning (JCH) joint venture, involving Hitachi’s 40 per cent stake.
Today, the involved parties signed binding agreements for the acquisition, which is pending approval from antitrust authorities and is expected to close within the next 12 months.
Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, stated that this is Bosch’s largest acquisition and marks a crucial step in implementing their 2030 strategy. This acquisition will position Bosch as a leader in the lucrative HVAC market and enhance its development. Hartung emphasized that this move would bolster Bosch’s presence in the U.S. and Asia, leading to a more balanced business portfolio and opening up new growth avenues.
The acquisition targets businesses that, together with JCH, generated approximately 4 billion euros in sales in 2023 and employed around 12,000 people worldwide. The transaction includes 16 manufacturing facilities and 12 engineering sites across more than 30 countries. The product range includes a full spectrum of HVAC solutions and notable brands such as York, Coleman, and Hitachi, with Bosch securing long-term licensing rights.
Christian Fischer, deputy chairman of the board of management at Bosch, responsible for strategic growth initiatives, highlighted that this acquisition will nearly double Bosch’s HVAC market revenue to about 9 billion euros. Fischer pointed out the potential for significant market growth driven by technological advances, climate change initiatives, and new regulations, projecting a 40 per cent market increase by 2030.
Bosch plans to merge the acquired entities with its Home Comfort Group. The integration will create a combined workforce of over 26,000, benefiting from economies of scale and a diversified product portfolio. Jan Brockmann, president of the Bosch Home Comfort Group, mentioned the growth in demand for air-conditioning solutions, especially in the U.S. and Europe, and expressed enthusiasm for the expanded capabilities and innovative potential this acquisition brings.
The HVAC operations being acquired from Johnson Controls are particularly influential in the U.S. and Asia, complemented by efficient air-water heat pumps primarily offered in Europe.
