Headquarters building of FläktGroup (Image courtesy of FläktGroup)
SEOUL, May 14 (Korea Bizwire) — Samsung Electronics has made its biggest acquisition in nearly a decade, purchasing Germany-based FläktGroup for €1.5 billion (approximately 2.38 trillion won or $1.68 billion) in a move to aggressively expand into the fast-growing global heating, ventilation, and air-conditioning (HVAC) market.
The deal, announced Tuesday, positions Samsung to capitalize on soaring demand for industrial-scale cooling solutions, particularly in data centers, gigafactories, and other energy-intensive infrastructure driven by the global boom in generative AI and robotics. The company said the acquisition lays the groundwork for establishing itself as a comprehensive global HVAC provider.
Founded in 1918, FläktGroup is Europe’s largest HVAC firm, serving customers in 65 countries and generating annual revenue of over €700 million. The company supplies centralized air systems to critical facilities such as hospitals, schools, offices, and advanced industrial plants. Samsung acquired the company from British private equity firm Triton.
Samsung has historically focused its HVAC business on residential and commercial sectors. With this acquisition, it will gain a stronger foothold in the large-scale B2B segment, including high-barrier markets like data centers and pharmaceutical manufacturing, which require sophisticated cooling technologies and service infrastructure.
The global HVAC market is projected to grow from $61 billion in 2024 to $99 billion by 2030, with an 18% annual growth rate specifically in the data center segment, according to Samsung’s internal estimates.
Samsung said FläktGroup’s extensive B2B experience and technical service capabilities will accelerate its entry into complex industrial applications and expand its reach in emerging markets across Southeast Asia, Latin America, and the Middle East and Africa — collectively referred to as the Global South.
Samsung Electronics has made its biggest acquisition in nearly a decade, purchasing Germany-based FläktGroup for €1.5 billion. (Image courtesy of Samsung Electronics)
With big tech firms like Google and Microsoft heavily investing in Southeast Asian data center infrastructure, Samsung sees significant opportunities in those regions.
The acquisition also positions Samsung to compete more directly with LG Electronics, which has recently elevated its HVAC division to a standalone business unit, ES Business Headquarters, as part of a broader push into B2B air solutions.
LG is expanding its footprint in India, Indonesia, and Vietnam, and investing heavily in the U.S. and European markets. In 2024, it began building a new HVAC plant in Alabama and launched joint R&D centers in Germany and Norway.
In the first quarter of 2025, LG’s ES division posted 3.05 trillion won in revenue, up 18% year-on-year, with operating profit rising 21.2% to 406.7 billion won.
With both Korean tech giants now vying for leadership in the HVAC sector, the battle is set to intensify, particularly as B2B solutions become a key growth driver for their long-term strategies. Samsung, which last made a major acquisition with its $8 billion purchase of Harman in 2017, appears to be reentering the M&A arena with an eye on infrastructure for the AI era.
M. H. Lee (mhlee@koreabizwire.com)
