Rheem parent to buy Fujitsu’s HVAC business for $1.6 billion
The deal marks the third major OEM acquisition announced in the past six months
Image: Designing Spaces
Rheem owner Paloma will acquire Fujitsu’s HVAC subsidiary, Fujitsu General, for up to $1.6 billion, according to a statement released on Monday.
The big picture: The deal marks the third major OEM acquisition announced in the past six months, following Bosch and Rheem’s purchases of Johnson Controls’ residential portfolio and Nortek, respectively.
What’s happening: Fujitsu has sought to sell its HVAC business since early 2023, previously engaging with private equity firms Bain Capital and KKR — but negotiations stalled.
- A year after talks resumed in December 2023, the company’s board on Monday agreed to approve a transaction with Paloma.
The intrigue: Rheem and Fujitsu General have been partners since late 2016, when the companies announced a collaboration to co-produce ducted and ductless systems in North America, launching their first joint product in 2020.
What’s next: The deal “will enable more in-depth collaboration for the sales of a wider range of [Fujitsu] products through [Rheem’s] extensive sales channels… in North America,” Paloma said in a statement.
- Fujistu didn’t respond to a request for comment.
Editor’s note: This story has been updated to reflect a comment from Paloma.
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