DEUTZ, which aims to combine its expertise in engine technologies with the defence industry, has reached an agreement to acquire FFG Flensburger Fahrzeugbau Gesellschaft mbH in full for 1.6 billion euros. The investment will increase the German manufacturer’s weight in military land vehicles and energy solutions, giving rise to a new systems provider in the European defence market.
Defence Division to be Established
FFG, based in Flensburg, Germany, and employing more than 1,100 people, operates in the production and maintenance of armoured recovery vehicles, infantry fighting vehicles and armoured personnel carriers. Under the deal, FFG will become the centrepiece of a new defence business unit to be established within DEUTZ. The company will continue to maintain its operational independence.
Partnership Structure and Financial Details
Part of the 1.6 billion euro purchase price will be paid in cash, while part will be covered by newly issued DEUTZ shares. As a result of this process, FFG’s current shareholders will become long term anchor shareholders of DEUTZ with a stake of up to 29.9 percent. Under the planned investment framework, these families are expected to take two seats on DEUTZ’s Supervisory Board.
DEUTZ CEO Dr. Sebastian Schulte highlighted the technological and production significance of the merger, stating that this step will secure value creation and employment in Germany.
Growth and Future Projections
DEUTZ management expects the merger to help the company reach its 2030 targets of 4 billion euros in revenue and a 10 percent EBIT margin earlier than planned. FFG, which reported around 760 million euros in revenue for 2025, will support the group’s growth targets with its strong order portfolio.
Completion of the acquisition depends on shareholder approval at an Extraordinary General Meeting to be held on 24 August 2026, as well as regulatory clearances. If all conditions are met, the transaction is expected to be finalised by the end of 2026 or the first quarter of 2027.
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Source: C4Defence-DEUTZ
