Bosch plans to acquire HVAC businesses from Johnson Controls, aiming to nearly double its market revenue to 9 billion euros and enhance its global presence in the HVAC sector.

Target Overview

The businesses that Bosch intends to acquire, in partnership with Johnson Controls (JCH), generated approximately 4 billion euros in sales revenue in 2023 and employ around 12,000 people globally. This transaction encompasses 16 manufacturing sites and 12 engineering locations across more than 30 countries. The product portfolio includes a comprehensive range of HVAC solutions tailored for residential and light commercial buildings, featuring renowned brands such as York and Coleman in the United States and Hitachi in Asia, for which Bosch will receive a long-term licensing agreement.

Industry Overview in the HVAC Sector

The global HVAC market is poised for significant growth, with projections indicating an increase of 40% by 2030. Factors such as technological advancements, stringent climate regulations, and a collective effort to ameliorate climate change are driving this expansion. Notably, heating technologies are transitioning from dependence on fossil fuels towards more sustainable solutions like heat pumps and hybrid systems. Concurrently, the demand for air-conditioning systems is escalating in both European and global markets.

In Europe, the HVAC industry has seen substantial shifts in consumer preferences, emphasizing energy-efficient solutions to combat global warming. Innovative technologies are increasingly being sought to not only en