Milliardedeal: Bosch buys climate business of US firm Johnson Controls
Johnson Controls and JCH are actively involved in heating, ventilation and air conditioning (HVAC) systems for residential and small commercial buildings globally. Bosch is set to acquire JCH in its entirety, thus also gaining a 40% stake in Hitachi, the company announced. The closing of the acquisition is aimed to be achieved "subject to regulatory approvals" within twelve months.
Bosch referred to the forecasted growing market for both air conditioning systems and heat pumps, which are based on the same technology. "Drivers for this are technological advancements, the fight against climate change, and new regulations", the company stated. Bosch aims to secure a "leading market position" in this area, according to CEO Stefan Hartung. With the acquisition, we will also strengthen our presence in the USA and Asia.
The climate and heating systems business will become part of Bosch's core business in the future - customers, installation partners, and employees will benefit from this, Bosch Vice-CEO Christian Fischer explained. JCH will be integrated into Bosch's existing home technology division, which will grow from 14,600 to over 26,000 employees as a result.
Bosch is the world's largest automotive supplier, with this division accounting for nearly two-thirds of the group's revenue. However, due to increasing competition from Asia and the challenges of transitioning to electric vehicles, the business has seen significant profitability losses in recent years.
- Bosch's acquisition of Johnson Controls will give the technology conglomerate a 40% stake in Hitachi, further expanding its interests in the climate technology business.
- Johnson Controls, along with JCH, has been a key player in the global market for heating, ventilation, and air conditioning systems, serving both residential and small commercial buildings.
- As part of the billion-dollar-deal between Bosch and Johnson Controls, the climate and heating systems business will be integrated into Bosch's existing home technology division, increasing its workforce to over 26,000 employees.
- Johnson Controls' acquisition by Bosch is subject to regulatory approvals and is expected to be completed within twelve months, providing Bosch with a stronger presence in the US and Asian markets.
- Johnson Controls also has a significant stake in Hitachi, a fellow player in the climate technology business, and Bosch's acquisition will enhance its relationship with the Japanese technology conglomerate.
- The US-company Bosch is aiming to secure a leading market position in the growing market for air conditioning systems and heat pumps, driven by technological advancements, the fight against climate change, and new regulations.
