Seoul: Samsung Electronics Co. announced the completion of its acquisition of FlaktGroup Holding GmbH, a Germany-based ventilation company.

According to Yonhap News Agency, the South Korean tech giant finalized the deal, originally signed in June, with European investment firm Triton to acquire a 100 percent stake in the German heating, ventilation, and air conditioning (HVAC) company. The transaction is valued at 1.5 billion euros (US$1.68 billion).

Samsung Electronics revealed plans to utilize FlaktGroup's production and sales networks to enhance research and development, as well as to fortify its supply chain. This strategy aims to integrate products and services to capitalize on synergies effectively. As a result of the acquisition, FlaktGroup's subsidiaries, including Woods Air Movement and SEMCO, will become part of Samsung Electronics. Woods Air Movement specializes in ventilation and fire safety systems, while SEMCO focuses on air handling and flow solutions.

The company expressed that this acquisition aligns with its strategy to foster the HVAC business as a new growth engine within its DX Division, which refers to its consumer products and services sector. Samsung Electronics intends to make continuous investments in commercial HVAC solutions and expand into rapidly growing sectors, such as AI data centers.

Samsung Electronics has been actively seeking new growth opportunities across various sectors, including HVAC, robotics, medical technology, and consumer audio. As part of its expansion efforts in the HVAC domain, the company has focused on ductless systems for both residential and commercial applications. In May 2024, Samsung Electronics established a joint venture with Lennox International Inc. to boost its HVAC presence in North America.