Samsung to acquire FläktGroup for €1.5B boosting data center play

Samsung Electronics (OTCPK:SSNLF) is acquiring European heating and cooling products' provider FläktGroup for €1.5B, equivalent to an enterprise value of €1.8B.

On Tuesday, it was reported that Samsung and FläktGroup-owner Triton Investments Advisers were in the final stages of discussing an acquisition that valued the German company at around $1.5B to $2B.

FläktGroup said on Wednesday that funds advised by Triton have signed an agreement to sell all shares of the company to Samsung. The transaction is expected to close in 2025, subject to customary regulatory approvals and closing conditions.

FläktGroup was formed in October 2016 through the merger of DencoHappel, previously part of the Galapagos group, a Triton Fund IV investment, with the newly acquired FläktWoods.

The companies noted that with the global applied heating, ventilation, air conditioning, or HVAC, market experiencing rapid growth, the acquisition reinforces Samsung’s commitment to expanding and strengthening its HVAC business.

The companies added that FläktGroup supplies high-reliability and high-efficiency HVAC systems to a range of buildings and facilities, including data centers that require stable cooling.

FläktGroup said its data center solutions include its liquid cooling and air cooling products, which have enabled customers to reduce energy consumption and contributed to achieving lower carbon footprint goals.

"Through the acquisition of FläktGroup, an applied HVAC specialist, Samsung Electronics has laid the foundation to become a leader in the global HVAC business, offering a full range of solutions to our customers," said TM Roh, Acting Head of the Device eXperience, or DX, division at Samsung. "Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine."

The companies noted that Samsung has been expanding its HVAC business with a focus on ductless systems, which supply general and system air conditioners to residential and commercial buildings.

In May 2024, Samsung formed a joint venture with Lennox International to strengthen its position in the North America ductless HVAC market and added Lennox’s distribution channels to its sales channels, according to the companies.