DEUTZ AG (DEUTZ) has entered into an agreement to acquire 100% of the shares in FFG Flensburger Fahrzeugbau Gesellschaft mbH (FFG), headquartered in Flensburg, Germany, from its private owner families against cash payment and newly issued DEUTZ shares representing up to 29.9% of DEUTZ’s increased share capital. Following the completion of the transaction, the selling families will become long-term oriented anchor shareholders of DEUTZ.

The total purchase price amounts to €1.6 billion. It comprises a cash component of approximately €1.0 billion, to be funded through debt financing that DEUTZ has secured from a consortium of international banks, and an equity component of currently approximately €0.6 billion, to be settled through the issuance of newly issued DEUTZ shares to the seller families. In order to issue the new DEUTZ shares, DEUTZ calls for an Extraordinary General Meeting (EGM) on 24 August 2026. In addition, DEUTZ has agreed to certain further compensation components, in particular variable components. DEUTZ and the selling families also entered into an investment agreement that reflects the long-term focus of the selling families as future anchor shareholders of DEUTZ. The investment agreement contains provisions that govern the future relationship between DEUTZ and the selling families, including their adequate representation in the supervisory board of DEUTZ.

The transaction will accelerate the DEUTZ Group’s profitable growth and is expected to bring the 2030 medium-term targets (€4 billion in revenue, EBIT margin of 10%) within reach ahead of schedule. With annual revenues of approximately €760 million in fiscal year 2025, FFG is one of Europe's leading providers of military land and special-purpose vehicles and an established partner of the Bundeswehr and armed forces in more than 15 countries. The transaction is part of the NextDEUTZ strategy and strengthens DEUTZ's position in the Defense segment and expands its market access. After closing, it is planned for FFG to become the core business within DEUTZ’s defense business segment, accelerating DEUTZ’s transition to a leading industrial platform.

This transaction represents the largest and most transformative German defense deal since Steen Associates advised on the creation of KNDS in 2015, establishing DEUTZ as a top 10 player in the German defense market and a highly attractive platform for investors seeking exposure to the defense industrial sector. Steen Associates acted as the exclusive M&A advisor to DEUTZ on this landmark transaction.

Completion of the transaction is subject to customary conditions, in particular receipt of regulatory clearances and approval of the capital increase by the EGM, and is expected for end of 2026 or Q1/2027.