takeover - Bosch navigates towards Billion-deal in Climate Technology business
Bosch Corporation is driving towards a Billion-dollar deal for its Heating and Climate Technology division. The group intends to acquire Johnson Controls' worldwide Heating, Ventilation and Air Conditioning (HVAC) business for residential and small commercial buildings, as the company announced in Gelingen near Stuttgart. In addition, Bosch plans to fully acquire Johnson Controls and Hitachi's joint venture.
The Bosch shareholders and the supervisory board have approved the transaction, according to further information. The parties involved signed binding agreements on Tuesday. The purchase price amounts to eight billion US-Dollars, which is approximately 7.4 billion Euros. The acquisition is expected to take place within twelve months, provided regulatory bodies approve the deal. Bosch CEO Stefan Hartung stated that this is the largest transaction in the company's history.
Largest Transaction in Bosch's History
The businesses Bosch intends to acquire generated approximately four billion Euros in revenue in the fiscal year 2023 and employed around 12,000 people worldwide. The transaction includes 16 production sites and 12 research and development sites in over 30 countries. Bosch aims to strengthen its market position in the USA and Asia with this acquisition.
Bosch plans to integrate the acquired businesses into the Home Comfort Group, headquartered in Wetzlar. The Bosch subsidiary generated a revenue of around five billion Euros in the fiscal year 2023 with 14,600 employees.
- The proposed takeover by Bosch will significantly enhance its presence in Europe, with Johnson Controls' HVAC business primarily based in the United States of America and Germany.
- The acquisition of Johnson Controls' and Hitachi's joint venture in Gerlingen, Baden-Württemberg, aligns with Bosch's strategy to expand its Energy Technology portfolio.
- Bosch's ambition to become a major player in the global technology conglomerate landscape is furthered by this acquisition, given Johnson Controls' prominent position in the industry.
- The integration of Johnson Controls' HVAC business into Bosch's Home Comfort Group, headquartered in Stuttgart, will create synergies in technology and innovation, benefiting both companies and their customers.
- With the addition of Hitachi's expertise in energy solutions and Johnson Controls' strengths in building technologies, Bosch aims to bolster its technology offerings to customers throughout Europe and the rest of the world.
- The takeover of Johnson Controls' HVAC business and Hitachi's joint venture could potentially pave the way for future collaborations with other technology companies, such as Bosch's Japanese partner, Hitachi.
