For 1.5 billion euros ($1.68 billion), Samsung Electronics announced that it would buy all of the shares of FläktGroup, a prominent producer of heating and cooling systems based in Germany, from European investment firm Triton.
Samsung claimed that the acquisition will enable it to build its operations in the rapidly expanding heating, ventilation, and air conditioning sector.
Samsung's position against competitors like LG Electronics in the HVAC sector could be strengthened with the acquisition of FläktGroup.
Data centers, which need a high level of steady cooling, are among the many buildings and facilities that FläktGroup provides heating and HVAC solutions to. As generative AI, robots, autonomous driving, and other technologies proliferate, Samsung said it expects data center demand to continue growing.
Samsung claims that FläktGroup has over 60 significant clients, including gigafactories, biotech, food and beverage giants, and top pharmaceutical companies.
In March, Samsung announced that it had double-digit yearly revenue growth over the previous five years for its HVAC solutions and that it wanted to increase revenue by over 30% by 2025.
Samsung's HVAC acquisition and concentration coincide with difficulties in other business areas, which have led to poor results and declining share prices in recent quarters.
The business has been lagging behind rival SK Hynix, which has better positioned itself to capitalize on demand driven by AI.
In recent years, Samsung has also had to contend with fierce competition from Apple, Chinese smartphone rivals, and TSMC in its contract chipmaking sector.
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Han Jong-hee, the co-CEO of Samsung, reportedly apologized to shareholders in March and stated that the company was seeking to engage in "meaningful" mergers and acquisitions in order to spur growth.