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Samsung Electronics Chairman Lee Jae-yong has reignited the group’s pursuit of large-scale mergers and acquisitions, striking its biggest deal in eight years since acquiring Harman. On May 14, Samsung announced it would acquire FläktGroup, Europe's largest HVAC (heating, ventilation, and air conditioning) company, for approximately 2.4 trillion won ($1.8 billion), signaling its strategic entry into the rapidly growing global HVAC market projected to reach 540 trillion won by 2030.

The move marks a significant expansion from Samsung’s existing residential and small-scale air conditioning business into centralized HVAC systems for large facilities such as office buildings, data centers, hospitals, and airports. The company aims to evolve into a full-fledged, comprehensive HVAC provider.

Founded over a century ago, Germany-based FläktGroup operates production facilities across North America, Europe, the Middle East, and Asia, and has a sales network in 65 countries with around 4,000 employees. The company holds the top market share in Europe and ranks among the global top five in HVAC. In 2023, it generated annual revenue of $769.7 million (approximately 1.08 trillion won), supplying high-efficiency systems to data centers, museums, libraries, and more.

Fläkt has grown rapidly on the back of demand from eco-friendly, low-carbon data centers. According to Samsung, the company leads the industry in chilled water distribution units (CDUs), boasting top-tier cooling capacity and energy efficiency. Fläkt was awarded the Innovation Award at the 2024 DCS Awards—often referred to as the "Oscars" of the data center industry—and currently serves over 60 global clients.

This acquisition is Samsung’s largest since it bought Harman for $8 billion in 2017. Samsung plans to complete the Fläkt acquisition within this year.

Until now, semiconductor companies were considered the most likely targets for Samsung’s next mega-deal, given its core business. Therefore, the choice of an HVAC firm came as a surprise to many. Yet, the HVAC sector is growing rapidly, particularly in centralized systems for commercial and industrial use—areas experiencing surging demand due to the expansion of AI-focused data centers.

Market research firm Grand View Research projects the global HVAC market will grow from $266.65 billion (377 trillion won) in 2024 to $382.66 billion (541 trillion won) by 2030, with an annual growth rate of 7.5%. Samsung expects the centralized HVAC segment alone to grow by 8% annually, reaching 140 trillion won by 2030. The company plans to focus its capabilities specifically on this segment, closely tied to the proliferation of data centers, which numbered nearly 6,000 globally as of the end of 2023.

Samsung had already made a strategic move last May by forming a joint venture with U.S. HVAC company Lennox to strengthen its North American presence. Industry experts note that while the HVAC market is fast-growing, it is dominated by entrenched players, making market entry difficult. For Samsung, acquiring Fläkt provides a critical foothold to accelerate its presence.

Industry watchers suggest that more M&As could follow. Samsung has reviewed numerous acquisition opportunities in recent years and has ample financial resources to act. As of the first quarter of 2025, Samsung held approximately 105 trillion won in cash and cash equivalents, with 12 trillion won in separate holdings.

Samsung has repeatedly signaled its intention to pursue “meaningful M&As” through shareholder meetings and earnings reports. Target sectors include AI, robotics, and automotive electronics. Recent examples include acquiring robotics firm Rainbow Robotics late last year and, earlier this month, Harman’s purchase of the audio business unit from U.S.-based Masimo.

Observers are also noting Chairman Lee’s active global business efforts since late 2024. In March, he visited China, meeting with executives from BYD and Xiaomi, and in April, he traveled to Japan to meet with Toyota and semiconductor equipment suppliers—suggesting a broader international expansion strategy is underway.