Deutz Buying Military Vehicle Maker FFG in EUR1.6 Billion Defense Push
Deutz (DEZ.F) is purchasing military vehicle manufacturer FFG Flensburger Fahrzeugbau Gesellschaft for 1.6 billion euros as part of plans to transform into a diversified industrial company.The German engine manufacturer will settle the acquisition through cash and newly issued shares. Upon settlement, the families that own FFG will become new anchor shareholders of Deutz with a stake of up to 29.9%.Deutz said Thursday that FFG will be integrated into its defense business unit, which will become a new cornerstone business alongside its energy, engines and new tech divisions. The move is expected to generate significant revenue synergies and accelerate the group's achievement of its revenue target of 4 billion euros under its 2030 strategy.Based in Flensburg, Germany, FFG supplies armored recovery vehicles, infantry fighting vehicles, armored personnel carriers, and special-purpose vehicles. The business has built a reputation as a partner of the Bundeswehr and armed forces in the North Atlantic Treaty Organization and Ukraine."Joining forces with FFG, DEUTZ will become a leading national systems provider for military vehicles, propulsion systems, and energy solutions. Together, we will fulfill our responsibilities for security and future resilience in Europe, while securing value creation and high-quality jobs in Germany," said Deutz Chief Executive Officer Sebastian Schulte.Completion of the transaction is expected in late 2026 or in the first quarter of 2027, subject to conditions including the approval of relevant regulators and of shareholders at an extraordinary general meeting scheduled for Aug. 24, 2026.Deutz shares rose 5% in early morning trading.
