Bosch intends to acquire the global HVAC business unit offering solutions for residential and smaller commercial buildings from Johnson Controls and 100 percent of the Johnson Controls-Hitachi Air Conditioning (JCH) joint venture, including Hitachi's 40 percent stake.
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Stefan Hartung, Bosch CEO: This is the largest transaction in Bosch's history and an important milestone in the implementation of our corporate strategy through 2030.
Christian Fischer, Bosch vice president: The acquired entities will strengthen the Home Comfort division in a highly attractive segment and become part of the company's core business.
The acquisition will expand Bosch's business in the US and Asian markets. Bosch Home Comfort Group's revenue will increase from about €5 billion to €9 billion. After the integration, the Bosch Home Comfort Group will have more than 26,000 employees, and the portfolio will include an even broader range of heating and cooling products.
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Bosch is continuing its growth with a strategic acquisition: it intends to acquire the global HVAC (heating, ventilation and air conditioning equipment) business unit offering solutions for residential and smaller commercial buildings from Johnson Controls. In addition, it will acquire 100 percent of Johnson Controls' joint venture Hitachi Air Conditioning (JCH), including Hitachi's 40 percent stake. The transaction was approved by Bosch's shareholders and supervisory board, and the parties signed binding agreements on July 23, 2024. The acquisition is also subject to customary closing conditions and regulatory approvals. The purchase price of the acquired companies is $8 billion (€7.4 billion). The acquisition is expected to be finalized in about 12 months.
This is the largest transaction in Bosch's history and an important milestone in the implementation of our corporate strategy through 2030. We are dynamically growing our business and with this acquisition we will become a global leader in the promising HVAC market," said Dr. Stefan Hartung, CEO of Robert Bosch GmbH. By taking this step, we will also strengthen our presence in the U.S. and Asia and achieve greater balance between our Group's business sectors. This is also part of our strategy - we will create new growth opportunities and strengthen the company as a whole.
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The companies Bosch intends to acquire employ nearly 12,000 people worldwide and generated revenues of around €4 billion in 2023. The deal includes 16 manufacturing plants and 12 engineering locations in more than 30 countries. Their portfolio includes a full range of HVAC solutions for residential and smaller commercial buildings, including well-known brands: such as York and Coleman in the US and Hitachi in Asia. Bosch will obtain a long-term license to operate them.
With this acquisition, Bosch will accelerate its growth and nearly double its sales revenue in the HVAC market, with an annual result of about €9 billion. Together with our future collaborators, we intend to take advantage of the huge market opportunities to develop this new unit," added Christian Fischer, vice chairman of the board of management of Robert Bosch GmbH responsible for the Group's strategic growth initiatives.
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The company expects the global HVAC market to grow 40 percent by 2030, thanks to technological advances, climate protection efforts and new regulations. The acquired companies will become part of our Group's core business - and this will benefit our customers, partners and employees, Fischer added. "We have repeatedly shown that we can successfully integrate brands within our organization, develop them through investment and strengthen them.
Our residential and small commercial building solutions business unit, as well as our world-class team, will perfectly complement the Bosch portfolio. We are confident that under this leadership the company will continue to thrive and deliver innovative products and services to its customers. We look forward to their continued success," said George Oliver, CEO of Johnson Controls. The new partnership with Bosch in the global air conditioning business is an important step. The market is dynamic and growing strongly. I firmly believe that Bosch, with its strong presence in Europe and extensive experience in the heating industry, is the best partner to further develop the Hitachi brand," stated Jun Abe, executive director and vice president of Hitachi and general manager of Hitachi Connective Industries.
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Innovative and energy-efficient solutions
The current transformation of technology and changes in market conditions in the HVAC area are creating tremendous opportunities for innovative and energy-efficient solutions that help combat global warming and support the transition to alternative energy sources. Heating technology is shifting away from fossil fuels such as oil and gas to heat pumps and hybrid solutions. At the same time, air-conditioning technology is becoming increasingly important both in Europe and around the world.
Bosch wants to actively shape the innovative and growing energy and building technology market and take a leading position globally," said Frank Meyer, member of the Bosch board of management responsible for the Energy and Building Technology sector, and thus for the Bosch Home Comfort Group and the integration of the new unit. This acquisition will strengthen our position in air conditioning. In addition, we will be able to expand our global heat pump business and achieve greater benefits by taking advantage of economies of scale. With Bosch technology and products, we can jointly contribute to greater energy efficiency, comfort and a better quality of life in the face of global warming. This is true "Technology closer to us."
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Complementary portfolio, established brands and strong team
Bosch intends to integrate the acquired companies into its Home Comfort Group business unit, which currently has 14,600 employees and sales of around €5 billion in 2023. Home Comfort has an excellent position in the main segments of the heating market, heat pumps and hybrid solutions, which combine a heat pump with a fossil fuel boiler to meet periods of high demand. Following the transaction, the Home Comfort Group will have more than 26,000 employees and will reap significant benefits through greater scale of operations and complementary heating and cooling products.
With our established heating technology and strong team in Europe, we are already well-established. Now it's time to expand globally. Demand for air-conditioning solutions is growing particularly fast," said Jan Brockmann, president of the Bosch Home Comfort Group. In the U.S., Bosch expects growth of more than 50 percent by the end of the decade, and in Europe by nearly 30 percent by 2030. We will now be able to build on strong, well-established brands. We look forward to shaping the future of the Bosch Home Comfort Group together with our future collaborators - with their innovations and ideas," Brockmann added. The HVAC sector, which Bosch intends to acquire from Johnson Controls, has a particularly strong position in the United States and Asia.
