DEUTZ signed an agreement on 9 July to buy FFG Flensburger Fahrzeugbau Gesellschaft, a supplier of military land vehicles to the Bundeswehr and NATO forces, for about €1.6bn.
Why DEUTZ AG is buying FFG Flensburger Fahrzeugbau Gesellschaft mbH
DEUTZ said FFG would make it a systems provider for European defence programmes, combining FFG's vehicles with its own engines, hybrid drivetrains and field power systems. It expects the deal to bring its 2030 targets of €4bn revenue and a 10% EBIT margin within reach ahead of schedule, with revenue synergies in its engines and service units.
“Joining forces with FFG, DEUTZ will become a leading national systems provider for military vehicles, propulsion systems, and energy solutions.”
Deal terms and financing
The price is paid partly in cash and partly in new DEUTZ shares issued through a capital increase against contribution in kind, leaving the families that own FFG with up to 29.9% of DEUTZ. FFG will remain operationally independent as the core of a new DEUTZ Defense business unit.
Regulatory approvals and timing
The Bundeskartellamt cleared the merger in its preliminary review, and DEUTZ shareholders approved the capital increase at an extraordinary general meeting on 24 August 2026 with about 99.7% of votes. Completion is expected in late 2026 or the first quarter of 2027, once remaining approvals are granted.
Market context
FFG employs more than 1,100 people and builds, maintains and modernises wheeled and tracked military vehicles, including armoured recovery vehicles, infantry fighting vehicles and armoured personnel carriers. The purchase price is close to DEUTZ's own stock-market value.
