Home Comfort business will nearly double
- “Biggest transaction in Bosch history and important milestone in the implementation of our corporate strategy for 2030,” said Stefan Hartung, chairman of Bosch.
- Christian Fischer, the deputy chairman of Bosch, stated that the acquired firms will integrate into Bosch’s core business and bolster Home Comfort in a highly desirable market.
- Increasing footprint in the United States and Asia.
- Developing creative, energy-saving ways to transition to alternate energy sources and lessen global warming.
- The sales income of Bosch Home Comfort Group is expected to rise from approximately 5 billion euros to 9 billion euros.
- The integrated entity will then employ over 26,000 people and offer a complementary offering at the heating and cooling interface.
Germany’s Stuttgart With a calculated acquisition, technology and services provider Bosch is accelerating its growth trajectory. The Bosch Group intends to acquire Johnson Controls’ global HVAC systems business for residential and light commercial buildings under its Energy and Building Technologies business area. Bosch also plans to purchase all of the Johnson Controls-Hitachi Air Conditioning (JCH) 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’ permissions are a prerequisite for the transaction. The amount paid to acquire the firms is 8 billion dollars (7.4 billion euros). The acquisition is expected to be closed in approximately 12 months.
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 improve the balance between 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 stabilize 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. The product line encompasses all HVAC options for homes and small businesses, and it features popular names like York and Coleman in the United States and Hitachi in Asia, for which Bosch has been granted a long-term license.
The person in charge of the strategic growth initiatives of the Bosch Group, including this planned acquisition, is Christian Fischer, the deputy chairman of the board of management of Robert Bosch GmbH. 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,” Fischer continues. “We’ve shown time and time again that we can successfully integrate brands, advance them through investments, and fortify them.”
“Our leading residential and light commercial business and its world-class team perfectly complement the Bosch portfolio,” stated Johnson Controls CEO George Oliver. We are sure that under Bosch’s direction, the company will keep growing and providing its clients with cutting-edge goods and services. We anticipate witnessing their ongoing success.
Head of Hitachi’s Connective Industries division and executive officer and executive vice president Jun Abe states: “The new partnership with Bosch to establish a global air-conditioning business is an important step.” The market is thriving and vibrant. I really think that Bosch, a worldwide supplier with a significant presence in Europe and years of experience in the heating industry, is the best partner for growing the long-standing Hitachi brand’s international air conditioning business.
Creative and economical ways to reduce global warming and transition to other energy sources
The HVAC industry is experiencing a significant technological and market shift that presents enormous potential 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. Concurrently, air conditioning technology is becoming more and more significant throughout Europe and beyond. Bosch’s management board member Frank Meyer is in charge of the company’s Energy and Building Technologies division, which includes the Bosch Home Comfort Group and the integration of the new entity says “Bosch aims to be a global leader in building and energy technologies and to actively contribute to shaping the dynamic and expanding market. We are strengthening our position with this acquisition, particularly in the air conditioning sector.
Furthermore, we will be able to develop our heat pump business globally and realize larger economies of scale. In light of global warming, we can collaborate to use our products and technologies to increase energy efficiency, provide greater comfort, and improve many people’s quality of life. That truly embodies “Invented for life.”
Strong staff, well-established brands, and a complementary portfolio
Bosch plans to include the purchased companies into the Home Comfort Collective. In 2023, the 14,600 employees of the current Bosch Home Comfort Group produced revenues of about 5 billion euros. In the key markets for heat pumps, heating systems, and heat pump hybrid solutions—which combine a heat pump with a fossil fuel-fired boiler for peak loads—Home Comfort has a strong competitive advantage. After the deal, the new facility will employ over 26,000 people and gain significant access to economies of scale and a complementary portfolio at the heating and cooling interface. “We already have a strong team and a sound foundation with our successful heating technology in Europe,” states Jan Brockmann, head of the Bosch Home Comfort Group. The timing is ideal to take a risk and establish a worldwide presence. The need for air conditioning systems is rising, particularly quickly. Bosch, for instance, projects growth of more than fifty percent in the United States by the end of this decade, and robust growth of about thirty percent in Europe until 2030. We will be able to expand on powerful, well-known brands together. We anticipate together with our future coworkers and their ideas and inventions to shape the Bosch Home Comfort Group’s future,” Brockmann continues.
The HVAC company that Bosch intends to buy from Johnson Controls is particularly well-established in Asia and the United States. Its product line in the US is concentrated on ducted solutions, which use air traveling through ducts from a single source to simultaneously heat and cool every room. It specializes in selling ductless solutions—which allow separate internal units in each room to be heated or cooled—as well as cutting-edge air conditioning systems built on variable refrigerant flow (VRF) systems in Asia. Applications for this technology in business range from modest establishments like retail outlets to substantial undertakings like hotels and hospitals. Johnson Controls provides effective air-water heat pumps that enhance the offering in these areas above all in Europe
