In a landmark transaction poised to reshape the global HVAC market, Bosch, the technology and services giant, has announced the acquisition of the HVAC solutions business from Johnson Controls and Hitachi. This strategic acquisition will significantly expand Bosch’s presence in the residential and light commercial HVAC sectors and marks the largest deal in the company’s history.

Bosch to Acquire Johnson Controls-Hitachi Air Conditioning Joint Venture

The acquisition, valued at approximately $8 billion (7.4 billion euros), includes the entirety of the Johnson Controls-Hitachi Air Conditioning (JCH) joint venture, which encompasses Hitachi’s 40 percent stake. Bosch shareholders and the supervisory board have already approved the transaction, with binding agreements signed. However, the deal is still subject to antitrust approvals and is expected to close within the next 12 months.

This move aligns with Bosch’s ambitious strategy for 2030, aiming to enhance its position in the HVAC market globally. Stefan Hartung, Chairman of the Board of Management at Robert Bosch GmbH, described this acquisition as a pivotal moment in Bosch’s growth strategy. He highlighted that the deal would bolster Bosch’s presence in the U.S. and Asia, and improve the balance among its business sectors. Hartung emphasized that this acquisition is a critical step towards achieving a globally leading position in the HVAC market.

Strategic Growth and Market Impact

Bosch’s acquisition includes 16 manufacturing sites and 12 engineering locations across more than 30 countries. The businesses involved generated sales of approximately 4 billion euros in 2023 and employ around 12,000 people worldwide. The acquisition encompasses well-known brands such as York and Coleman in the U.S., and Hitachi in Asia. Bosch will also receive a long-term license for Hitachi’s brand.

Christian Fischer, Deputy Chairman of the Board of Management at Robert Bosch GmbH, underscored the strategic importance of this acquisition. Fischer noted that the transaction would nearly double Bosch’s sales revenue in the HVAC sector to around 9 billion euros. He anticipates significant growth opportunities driven by market expansion, technological advancements, and new regulations aimed at addressing climate change.

Expert Opinions on the Acquisition

Industry experts view Bosch’s acquisition as a decisive move to capitalize on the evolving HVAC market. The global HVAC market is expected to grow by 40 percent by 2030, spurred by advancements in technology and increasing environmental regulations. Frank Meyer, a member of Bosch’s management board responsible for the Energy and Building Technology business sector, highlighted that the acquisition aligns with Bosch’s commitment to innovation and energy efficiency. Meyer emphasized that integrating the acquired businesses into Bosch’s core operations will enhance energy efficiency and contribute to global efforts against climate change.

George Oliver, CEO of Johnson Controls, expressed confidence that Bosch’s leadership would drive continued success for the acquired business. He praised the synergy between Bosch’s and Johnson Controls’ portfolios, anticipating that the combined strengths will benefit customers and drive future innovation.

Jun Abe, Executive Officer and Executive Vice President at Hitachi, also welcomed the partnership with Bosch. Abe noted that Bosch’s extensive European presence and experience in heating technology make it an ideal partner for expanding Hitachi’s global air-conditioning business.

Bosch’s Vision for Future Growth

Following the acquisition, Bosch plans to integrate the new businesses into its Home Comfort Group. This integration will combine the existing Bosch Home Comfort Group workforce of 14,600 with the new team, totaling over 26,000 employees. The expanded unit will leverage economies of scale and a complementary portfolio to enhance its position in both heating and cooling markets.

Jan Brockmann, President of the Bosch Home Comfort Group, highlighted that the acquisition is a strategic move to establish a stronger global presence. Bosch anticipates substantial growth in the HVAC market, particularly in the U.S. and Europe, and is prepared to leverage its advanced technologies and established brands to capture these opportunities.

Bosch’s acquisition of Johnson Controls’ HVAC business and the Hitachi joint venture marks a significant development in the global HVAC industry. The deal is expected to enhance Bosch’s capabilities in providing innovative and energy-efficient solutions, further establishing the company’s leadership in the market.

  Bosch, Christian Fischer, Frank Meyer, George Oliver, Hitachi, Jan Brockmann, Johnson Controls, Jun Abe, Robert Bosch GmbH, Stefan Hartung