Bosch wants to take over Johnson Controls’ heating and air conditioning technology business for 7.4 billion euros. This would be the largest purchase in the company’s history. There are also strategic goals behind this.
The technology group Bosch is moving toward a billion-dollar deal for its heating and air conditioning technology division. The group plans to take over the global heating, ventilation and air conditioning solutions business for residential and small commercial buildings from the Irish building technology group Johnson Controls, as the company announced in Gelingen near Stuttgart. In this context, the company also wants to fully acquire a joint venture between Johnson Controls and the Japanese industrial group Hitachi.
The shareholders and the supervisory board of Bosch have approved the transaction, it said. Binding agreements were signed by the parties involved on Tuesday. The purchase price is eight billion US dollars, or around 7.4 billion euros. The takeover is expected to take place in twelve months – provided the authorities approve the deal. According to Bosch CEO Stefan Hartung, this is the largest transaction in the company’s history.
Largest transaction in Bosch history
According to the information, the businesses that Bosch wants to buy generated a total turnover of around four billion euros in the 2023 financial year and employ around 12,000 people worldwide. The transaction includes 16 production sites and 12 development sites in more than 30 countries. With the purchase, Bosch is strengthening its market position in the USA and Asia in particular, it said.
Bosch wants to integrate the acquired businesses into the Home Comfort Group with its administrative headquarters in Wetzlar. The Bosch subsidiary generated sales of around five billion euros in the 2023 financial year with 14,600 employees.
Source: Stern
