Bosch acquires residential and light commercial HVAC business from Johnson Controls and Hitachi

Bosch plans to take over the global HVAC solutions business for residential and light commercial buildings from Johnson Controls. As part of this transaction, Bosch also intends to acquire 100 percent of the Johnson Controls-Hitachi Air Conditioning joint venture, including Hitachi’s 40 percent stake. Bosch will achieve a globally leading position in the promising HVAC market with this acquisition. Bosch intends to integrate both acquired businesses into its Home Comfort Group.

The 14,600 associates of the existing Bosch Home Comfort Group generated sales of roughly 5 billion euros in 2023. The company is excellently positioned in the major segments of the heating market, the heat-pump market, and the market for heat pump-hybrid solutions, which comprise a heat pump and a fossil fuel-fired boiler for peak loads.

The Bosch Home Comfort Group continues to systematically pursue its strategy of being a leading supplier for heating, cooling, and well-being. Following the merger of the operations of Johnson Controls that are to be acquired, the new unit will have a workforce of more than 26,000 and be able to benefit considerably from economies of scale and a complementary portfolio at the interface between heating and cooling.

Also regionally speaking, the Bosch Home Comfort Group and the HVAC business Bosch plans to acquire from Johnson Controls will complement each other excellently: Bosch Home Comfort Group’s strong position in the European market will be joined by the equally strong position of the business to be acquired in the Asian market. In the U.S. as well, we will be stronger together than individually.

No. Bosch remains committed to Germany and Europe as an industrial location. Our German engineering and manufacturing locations are the backbone of our industrial expertise and innovation leadership. To take our company dynamically forward, we want to accelerate our growth and seize our opportunities worldwide. With this acquisition, we will achieve a globally leading position in the promising HVAC market and will be able to improve our chances of growth in both Europe and the U.S. and Asia.

The current transformation in technologies and market conditions in the field of HVAC solutions opens up huge opportunities for supplying innovative solutions for mitigating global warming and the move to alternative energy. Heating technology is moving away from fossil fuels such as oil and gas toward heat pumps and hybrid solutions. At the same time, climate control technology is growing in importance both in Europe and worldwide.

With our technology and our products, we can work together with the entities to be acquired to make a bigger contribution to energy efficiency and to more comfort and a better quality of life for many people in light of global warming. After all, we are improving our position, especially in climate control. In addition, we will be able to globally expand our heat-pump business.

For health reasons resulting from high temperatures, cooling is just as necessary as heating in many regions of the world. At root, therefore, cooling is technology that is “Invented for life.” Technologically speaking, air-conditioning systems are electrically powered air-to-air heat pumps, and thus just as efficient as the air-water heat pumps that are common in central Europe. Bosch is working on making this technology even more efficient – such as operating these systems with renewable energy and integrating them into energy management systems.

Bosch, the supplier of technology and services, is continuing its growth course with this strategic acquisition. It is the biggest transaction in Bosch history and important milestone in the systematic implementation of its strategy for 2030. At Bosch, the acquired businesses are to become part of the core business – and we firmly believe that our customers, our partners, and our associates will benefit. We expect the global HVAC market to grow 40 percent by 2030, driven by technological progress, the fight against climate change, and new regulations.

With this acquisition, we will significantly widen our regional and technological position in innovative and energy-efficient heating and air-conditioning solutions. This is one of the main reasons for the acquisition. With this transaction, Bosch will gain an active and formative leading position in the global HVAC market.

The HVAC business Bosch plans to acquire from Johnson Controls has an especially strong presence in the United States and Asia. In the United States, its portfolio focuses on ducted solutions in which air passes from a central source through ducts in order to heat or cool all rooms at the same time.

In Asia, it especially sells ductless solutions, where interior units in each room can heat or cool individually, as well as modern air-conditioning systems based on variable refrigerant flow (VRF) systems. This technology is used in commercial applications ranging from light commercial premises such as retail stores to large projects such as hotels and hospitals.

The portfolio in these regions is supplemented by efficient air-water heat pumps, which Johnson Controls offers above all in Europe.

Yes. We want to grow together. The two companies will contribute strong and well-established brands that operate in various segments. Together, we will be able to build on strong established brands such as Bosch and Buderus in Europe, as well as on York and Coleman in the U.S. and Hitachi in Asia as long-term licensed brands.

There are currently no plans to change anything in the structure of our operations. The usual contact persons are still available.