LG to Acquire OSO in Strategic HVAC Expansion Move
Deal News | Jul 02, 2025 | EIN
LG Electronics has announced a strategic acquisition of OSO, a leading European provider of water heating solutions, further strengthening its HVAC portfolio. This acquisition signifies LG's ambition to become a top-tier player in the global HVAC industry. OSO, founded in 1932, is well-recognized in Europe for its wide range of advanced water heating technologies, including electric water heaters and stainless steel thermal storage systems. The deal comes at a time when the European market is experiencing a surge in demand for air-to-water heat pump systems, driven by climate policies and energy security concerns. Through this acquisition, LG aims to integrate OSO's product lineup with its heat pump technologies, enhancing its competitiveness and expanding its presence in Europe. OSO will continue to operate independently post-acquisition, leveraging LG's global scale and resources. The acquisition aligns with LG's 3B strategy—Build, Borrow, Buy—aimed at accelerating growth in the HVAC sector through strategic acquisitions.
Sectors
- HVAC Industry
- Renewable Energy
Geography
- Europe – The acquisition of OSO, a European company, allows LG to expand its presence in the European HVAC market, which is experiencing robust growth in demand for sustainable technologies.
- South Korea – LG Electronics, the acquiring company, is based in South Korea, highlighting the international scope of the transaction.
Industry
- HVAC Industry – The HVAC (Heating, Ventilation, and Air Conditioning) industry is central to this acquisition, as LG seeks to integrate OSO's water heating solutions with its own advanced HVAC technologies to strengthen its market position.
- Renewable Energy – The acquisition focuses on heat pumps, which are an integral part of renewable energy solutions, aligning with Europe's climate policies and energy transition efforts.
Financials
- Not disclosed – The financial terms of LG's acquisition of OSO have not been disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| LG Electronics | Acquirer | Company | A South Korean multinational electronics company, pursuing strategic acquisitions to enhance its HVAC portfolio. |
| OSO Group AS | Target Company | Company | A leading provider of water heating solutions based in Norway, with a strong market presence in Europe. |
| ES Company | Division of LG | Company | The division of LG Electronics focused on accelerating growth in the HVAC business sector. |