The all-cash deal includes Johnson’s joint venture with Hitachi.
By Dianne M. Pogoda
Bosch, the German manufacturing giant whose portfolio includes several premium kitchen appliance brands, has agreed to purchase the residential and light commercial heating, ventilation and air conditioning business of Johnson Controls International Plc for $8 billion in cash.
The acquisition is the largest in Bosch’s history, and includes a North American duct business joint venture with Hitachi Ltd. The deal is expected to close within a year, subject to regulatory approval.
Bosch’s appliance division (BHS Group) makes Bosch, Gaggenau, Siemens, Neff and Thermador appliances, in addition to several other brands exclusive to local markets.
The HVAC business will be added to Bosch’s Home Comfort division, which is expected to nearly double in sales to about $9.8 billion.
“We will achieve a globally leading position in the promising market for HVAC with this acquisition,” said Bosch CEO Stefan Hartung in a statement. “Moreover, we will strengthen our presence in the U.S. and Asia, and we will achieve a better regional balance among our business sectors.”
The Johnson Controls businesses included in this transaction generated sales of over $4 billion in 2023, and the deal also includes 16 manufacturing plants and 12 engineering facilities around the world. Among JCI’s HVAC brands are York and Coleman in the U.S. and Hitachi in Asia.
Bosch said it expects the global HVAC market to grow 40 percent by the end of the decade, driven by new technologies, new regulations around the world and the battle against climate change.
Bosch’s operations are divided into four business sectors: Mobility; Industrial Technology; Consumer Goods, and Energy and Building Technology. BSH generated sales of about $16 billion in 2023, while the overall group posted revenues of about $99 billion.
