LG Electronics has signed an agreement to acquire a 100% stake in OSO, a European water heating solutions provider. The strategic acquisition will further fortify LG’s comprehensive HVAC portfolio – a core growth engine of its B2B business – and accelerate the company’s ambition to become a top-tier player in the HVAC industry.
Founded in 1932, OSO offers a complete range of water heating solutions, including electric water heaters, stainless steel thermal storage systems for heat pumps and boilers, and other advanced water heating technologies.
Integrated HVAC and water heating packages
As highlighted by LG, Europe is witnessing a rapid rise in demand for air–to–water heat pump (AWHP) systems, technologies that provide heating, cooling and hot water by extracting heat from ambient air. According to BRG Building Solutions, the European heat pump market should double by 2030, with annual unit sales increasing from approximately 1.2 million in 2024 to 2.4 million by the start of the next decade.
The acquisition creates synergies, combining OSO’s product lineup with LG’s advanced heat pump technologies. This integration will further enhance LG’s ability to deliver complete HVAC solutions, strengthen its competitiveness in Europe and support its global expansion strategy. LG plans to offer integrated HVAC and water heating packages that deliver optimized solutions tailored to diverse customer needs. Furthermore, LG will combine its R&D and heat pump expertise with OSO’s deep product knowledge to broaden and elevate its overall HVAC solution portfolio.
OSO’s stainless steel hot water solutions
Manufacturers of hot water systems with heat pumps typically use enamel or stainless steel. These products must guarantee hygiene and resistance to corrosion.
“OSO’s stainless steel hot water solutions – LG explains – boast excellent energy efficiency and minimal heat loss, key advantages that have helped the company secure a leading position in Europe. With manufacturing facilities in Norway and Sweden, OSO ensures a timely and stable supply of high-quality products across the region. The company’s early adoption of automated manufacturing processes has also enabled exemplary product quality and cost competitiveness.
LG aims to build on these capabilities by jointly pursuing manufacturing innovation with OSO, enhancing automation and productivity through its own over 60 years of production expertise. The integration of both companies’ networks and infrastructure is expected to unlock powerful synergies”.
Following the acquisition, OSO will continue to operate independently, retain its existing OEM partnerships and pursue new growth opportunities, while benefiting from LG’s global scale and resources.
LG’s “3B” strategy: Build, Borrow, Buy
In late 2024, LG established the ES Company to accelerate growth in its HVAC business. It offers a comprehensive HVAC portfolio spanning residential and commercial air conditioners to large-scale chillers. LG is also pioneering the digital transformation of HVAC, applying AI-powered technologies.
To drive this growth, LG’s HVAC business is actively implementing a “3B Strategy”: building internal capabilities, borrowing external expertise and buying through strategic acquisitions. The OSO deal exemplifies this approach and also underscores LG’s commitment to expanding its B2B footprint through mergers, acquisitions and partnerships.
