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. A recognized market leader, OSO has firmly established its presence in Europe’s USD 15 billion heating and hot water solutions market.

Driving Growth Through Integrated HVAC and Water Heating Solutions
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. This growth is being driven by the region’s climate policies and energy security concerns.

According to BRG Building Solutions, the European heat pump market is expected to 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.

By combining OSO’s product lineup with LG’s advanced heat pump technologies, the acquisition creates immediate synergies. This integration will further enhance LG’s ability to deliver complete HVAC solutions, strengthen its competitiveness in Europe and support its broader 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 Solution Lead the European Market
Hot water systems designed for heat pumps are typically made from either enamel or stainless steel. While enamel was historically favored, stainless steel is now preferred due to its superior hygiene and resistance to corrosion.

OSO’s stainless steel hot water solutions 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 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.

Accelerating Growth with LG’s “3B” Strategy: Build, Borrow, Buy
In late 2024, LG established the ES Company to accelerate growth in its HVAC business. With an ambitious goal to outpace industry growth in the cleantech sector, the ES Company 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 next-generation solutions for data centers, nuclear facilities and mega factories.

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 underscores LG’s commitment to expanding its B2B footprint through mergers, acquisitions and partnerships.

“LG’s deep know-how in Heat Pump Water Heaters in combination with OSO stainless steel tank leadership will ensure sustainable, high-quality product solutions for our customers,” said Sigurd Braathen, Owner of OSO Group AS.

“OSO’s proven water heating solutions are a strategic catalyst for LG’s HVAC expansion,” added James Lee, president of the LG ES Company. “Together, we will deliver highly efficient, integrated solutions that strengthen our market leadership and support global electrification for a more sustainable future.”