Danfoss has officially finalized its acquisition of BOCK GmbH, a world leader in CO2 and low-GWP compressors utilized in cooling and heating applications.
The acquisition sealed Danfoss’ position as a preferred provider of greener cooling and heating solutions. The announcement is made in conjunction with the company reporting strong financial performance in 2022, signifying strong growth potential for products and solutions that contribute to meeting sustainable and climate goals.
BOCK’s best-in-class technology is a natural fit for Danfoss’ existing compressor portfolio and will accelerate decarbonization with climate-friendly and energy-efficient cooling and heating solutions.
BOCK’s renowned CO2 and low-GWP (Global Warming Potential) semi-hermetic reciprocating compressors and condensing units expand Danfoss’ position as a full-service provider for greener cooling and heating solutions.
Kristian Strand, President, Danfoss Commercial Compressors said, “When there’s more than one road to decarbonization, there’s no such thing as too many solutions. By adding BOCK’s world-leading technology to Danfoss’ extensive portfolio of compressors, valves, controls, heat exchangers, and sensors, we are simply consolidating our position as the leading provider of greener cooling and heating solutions. This is an exciting day for both brands. By combining our respective expertise, we will help accelerate energy efficiency and the global transition to natural and low-GWP refrigerants.”
With a combined history of almost 200 years, a pre-existing close partnership, and compatible values, BOCK and Danfoss are focused on providing seamless business continuity and increased options for customers of both brands. Joining the Danfoss Commercial Compressors division, BOCK will become a distinct product brand name for semi-hermetic reciprocating compressors.
Dr Marcus Albrecht, CEO of BOCK highlighted the company’s high hopes for the future with more business opportunities and innovations in sustainable cooling/heating, by being part of Danfoss family. BOCK has an impressive global reputation for quality, innovation and climate-friendly technology within the refrigeration and air conditioning sectors.
Danfoss achieved stellar financial results in 2022
Meanwhile, Danfoss also reported an impressive 36% growth in sales to €10.3 billion (US$10.97 billion) in 2021, combined with a strong free operating cash flow before M&A of €465 million (US$495.2 million).
After continued high levels of strategic investments in innovation, production capacity, digital transformation, and regional growth initiatives, its EBITA increased 26% to €1.224 billion (US$1.3 billion) compared to 2021. Earnings were affected by the exit from Russia and the creation of Semikron Danfoss and driven by the higher topline and continued traction in managing sourcing, factory performance, and pricing.
Kim Fausing, President & CEO of Danfoss said, “Danfoss is better positioned for growth across all regions than we have ever been. Our sales are almost distributed evenly across the Americas, Europe and Asia with significant opportunities in all regions. As an example, we increased our sales significantly again this year in North America. With our record levels of investments in production capacity, regionalization, and digital solutions, we are targeting to further improve the service to our customers globally.”
Investment in R&D and Innovations went up by 39% to €457 million (US$486.7 million), and investments in production capacity, regionalization, and digital solutions jumped 44% to €531 million (US$565.5 million).
Danfoss’ Core & Clear 2025 strategy, a green growth strategy, was launched in April 2022 with the aim of ensuring further investments in strengthening Danfoss’ 3 business segments and sustaining strong application know-how, sustainable innovation, and leading positions.
For the year 2023, Danfoss projected higher sales in the range of €10.4-11.9 billion (US$11.1-12.67 billion). Danfoss remains committed to decarbonizing its global operations by 2030, which is included in the targets of its 3 step-change initiatives on Decarbonization, Circularity, and Diversity & Inclusion.
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