The Energy and Business Technology business sector of the Bosch Group, plans to take over the global HVAC business for residential and light commercial buildings from Johnson Controls. The company also intends to acquire 100 percent of the Johnson Controls-Hitachi Air Conditioning (JCH) joint venture, including Hitachi’s 40 percent stake.
The shareholders and supervisory boards have approved the transition and now the acquisition is subject to approval from the antitrust authorities. The purchase price for the acquired businesses is 8 billion dollars (INR 66,94,96,000) and is expected to be closed in approximately 12 months. Together with JCH, the businesses Bosch intends to acquire generated sales revenue totaling roughly 4 billion euros in 2023, and employ some 12,000 people worldwide.
Stefan Hartung, chairman of the board of management of Robert Bosch GmbH says that, by taking this step, they’ll strengthen their presence in the US and Asia to achieve a better balance among our business sectors.
The transaction includes 16 manufacturing sites and 12 engineering locations in more than 30 countries. The product portfolio covers the entire spectrum of HVAC solutions for residential and light commercial buildings, and includes well-known brands such as York and Coleman in the US and Hitachi in Asia, for which Bosch will be granted a long-term license. The company expects the global HVAC market to grow 40 percent by 2030, driven by technological progress, the fight against climate change, and new regulations.
Bosch intends to integrate the acquired businesses into the Home Comfort Group and is said to have generated sales of roughly 5 billion euros (INR 4,54,25,50,00,000) in 2023. 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.
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.
