Samsung Electronics is acquiring the German company FläktGroup, the largest air conditioning equipment manufacturer in Europe.

South Korea’s largest conglomerate signed a contract on Wednesday to acquire the 100 percent stake in FläktGroup from British private equity fund Triton for one-point-five billion euros, or one-point-68 billion U.S. dollars.

Headquartered in Herne, western Germany, FläktGroup is a heating, ventilation and air conditioning(HVAC) specialist that manufactures air conditioning units for industrial and residential buildings.

With the acquisition, Samsung Electronics plans to fully enter the global HVAC business-to-business market.

The acquisition process is expected to be complete within the year.