Home Comfort business will nearly double
- Bosch chairman Stefan Hartung: “Biggest transaction in Bosch history and important milestone in the implementation of our corporate strategy for 2030.”
- Bosch deputy chairman Christian Fischer: “Acquired entities will strengthen Home Comfort in an extremely attractive segment, and will become part of Bosch core business.”
- Expansion of presence in the U.S. and Asia.
- Innovative, energy-efficient solutions for the move to alternative energy and for helping to mitigate global warming.
- Bosch Home Comfort Group sales revenue to increase from roughly 5 billion euros to 9 billion euros.
- Integrated unit will then have workforce of more than 26,000 and complementary portfolio at the interface between heating and cooling.
Stuttgart, Germany –With a calculated acquisition, technology and services provider Bosch is accelerating its growth trajectory. The Bosch Group intends to acquire Johnson Controls’ global HVAC solutions business for residential and light commercial buildings under its Energy & Building Technology business segment. Bosch also plans to purchase all of the Johnson Controls-Hitachi Air Conditioning joint venture, including Hitachi’s 40% share, as part of this deal. The transaction has been approved by the supervisory board and shareholders of Bosch. The parties involved signed binding agreements on the acquisitions today. The antitrust authorities’ approval is a prerequisite for the acquisition. The acquired enterprises are being purchased for a sum of $8 billion (7.4 billion euros). In about a year, the deal is anticipated to finalize.
This acquisition, which is the largest in Bosch history, marks a significant turning point in the methodical execution of our 2030 vision. Stefan Hartung, chairman of Robert Bosch GmbH’s board of management, states, “With this acquisition, we will achieve a globally leading position in the promising HVAC market, which we are dynamically pushing ahead with thanks to Bosch’s strong development.” Furthermore, by making this move, we will better balance our business sectors and bolster our position in both Asia and the United States. This is a component of our plan as well. By doing this, we will provide more room for expansion and establish a more stable foundation for the business as a whole.
In addition to JCH, the companies Bosch plans to buy will employ about 12,000 people globally and generate sales revenue of about 4 billion euros in 2023. In more than 30 nations, the deal comprises 16 production and 12 engineering centers. Bosch has been granted a long-term license to distribute its well-known brands, which include York and Coleman in the United States and Hitachi in Asia, throughout the whole spectrum of HVAC solutions for residential and light commercial buildings.
The person in charge of the Bosch Group’s strategic growth initiatives, including this planned acquisition, is Christian Fischer, the deputy chairman of Robert Bosch GmbH’s board of management. He continues, saying that Bosch will accelerate its growth and nearly double its sales revenue in the HVAC market to approximately 9 billion euros with this acquisition. We wish to take advantage of the enormous market potential for this new unit’s further expansion alongside our future coworkers. The business projects that new legislation, the fight against climate change, and technical advancements will fuel a forty percent growth in the worldwide HVAC market by 2030. “Customers, installation partners, and associates will benefit as the acquired businesses become part of Bosch’s core business,”
“Our leading residential and light commercial business and its world-class team perfectly complement the Bosch portfolio,” stated George Oliver, CEO of Johnson Controls. We are sure that under Bosch’s direction, the company will keep growing and providing its clients with cutting-edge goods and services.We hope they continue to achieve success.
Jun Abe, executive officer and executive vice president at Hitachi, and executive officer and general manager of the Hitachi Connective Industries division, says: “The new partnership with Bosch to establish a global air-conditioning business is an important step. The market is dynamic, and is flourishing. I firmly believe that a global supplier such as Bosch, with its strong European presence and many years of experience in the heating business, is the optimum partner for further expanding the global air-conditioning business of the longstanding Hitachi brand.”
Innovative, energy-efficient solutions for mitigating global warming and the move to alternative energy
The HVAC industry is experiencing a significant shift in market conditions and technology, which presents enormous opportunity for providing creative and energy-efficient solutions to reduce global warming and transition to alternate energy sources. Heat pumps and heat pump-hybrid systems are replacing fossil fuels like gas and oil in heating technologies. Simultaneously, air conditioning technology is becoming more and more significant in Europe and across the globe. It is the goal of Bosch to actively participate in shaping the innovative and expanding market for energy and building technology and to hold a leading position globally. This is stated by Frank Meyer, a member of the Bosch management board who oversees the company’s Energy and Building Technology business sector, as well as the Bosch Home Comfort Group and the integration of the new unit.
We are strengthening our position with this acquisition, particularly in the air conditioning sector.Furthermore, we will be able to attain larger economies of scale and grow our heat-pump company internationally. With the use of our products and technologies, we can collaborate to improve energy efficiency, as well as many people’s comfort and quality of life in light of global warming.”Invented for life” in the truest sense is that.
Complementary portfolio, established brands, and a strong team Bosch intends to integrate the acquired businesses into the Home Comfort Group. The 14,600 associates of the existing Bosch Home Comfort Group generated sales of roughly 5 billion euros in 2023. Home Comfort is excellently positioned in the major segments of the heating market, of the heat-pump market, and of the market for heat pump-hybrid solutions, which comprise a heat pump and a fossil fuel-fired boiler for peak loads. Following the transaction, the new unit will have a workforce of more than 26,000 and be able to benefit considerably from economies of scale and a complementary portfolio at the interface between heating and cooling.
Jan Brockmann, president of the Bosch Home Comfort Group, says: “With our successful heating technology in Europe, we already have a strong team and a sound foundation. Now is the right time for a bold step toward a global presence. Demand for air-conditioning solutions is growing especially fast.” In the U.S., for example, Bosch expects to see more than 50 percent growth by the end of the decade, and in Europe as well, strong growth of approximately 30 percent is forecast up to 2030. Together, we will be able to build on strong, well-established brands. We are looking forward to shaping the future of the Bosch Home Comfort Group with our future colleagues and their innovations and ideas,” Brockmann adds.
The HVAC business Bosch plans to acquire from Johnson Controls has an especially strong presence in the United States and Asia. In the United States, its portfolio focuses on ducted solutions in which air passes from a central source through ducts in order to heat or cool all rooms at the same time. In Asia, it especially sells ductless solutions, where interior units in each room can heat or cool individually, as well as modern air-conditioning systems based on variable refrigerant flow (VRF) systems. This technology is used in commercial applications ranging from light commercial premises such as retail stores to large projects such as hotels and hospitals. The portfolio in these regions is supplemented by efficient air-water heat pumps, which Johnson Controls offers above all in Europe.
