Deutz acquires defense firm FFG for 1.6 billion euros

Cologne-based engine manufacturer Deutz has completed the acquisition of Flensburger Fahrzeugbau GmbH (FFG), a defense company based in Schleswig-Holstein. The transaction, valued at approximately 1.6 billion euros, was settled through a combination of cash and Deutz shares.

FFG specializes in the maintenance and modernization of tanks and other military vehicles, serving clients such as the German Bundeswehr, Denmark, various NATO member states, and Ukraine. The acquisition significantly expands Deutz's portfolio from agricultural and industrial engines to include defense technology. The subsidiary is expected to generate an additional one billion euros in defense-related revenue next year.

Following the deal, the four families that previously owned FFG hold a 29.9 percent stake in Deutz, making them the company's largest shareholders. Deutz now employs approximately 7,500 people, including 1,100 from FFG. CEO Sebastian Schulte stated that while the defense sector will become a core part of the business, the company does not intend to become a traditional defense conglomerate.