Samsung Electronics plans to purchase climate control solutions company FläktGroup for 1.5 billion euros.

A Samsung Group flag flutters in front of the company’s Seocho building in Seoul. Sopa Images | Lightrocket | Getty Images

Samsung Electronics on Wednesday announced that it would acquire all shares of German-based FläktGroup, a leading heating and cooling solutions provider, for 1.5 billion euros ($1.68 billion) from European investment firm Triton. Samsung stated that the acquisition would help it expand in the heating, ventilation, and air conditioning business as the market experiences rapid growth.

“Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine,” said TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung Electronics.

The acquisition of FläktGroup stands to enhance Samsung’s position in the HVAC market against rivals such as LG Electronics. FläktGroup supplies heating and HVAC solutions to a wide range of buildings and facilities, notably data centers, which require a high degree of stable cooling. Samsung indicated that it anticipates sustained growth in data center demand due to the proliferation of generative AI, robotics, autonomous driving, and other technologies.

FläktGroup has more than 60 major customers, including leading pharmaceutical companies, biotech and food and beverage firms, and gigafactories, according to Samsung’s statement. Samsung mentioned in March that its HVAC solutions had achieved double-digit annual revenue growth over the past five years, and the company aimed to boost revenue by more than 30% in 2025.