Rheem parent to buy Fujitsu’s HVAC business for $1.6 billion

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.