The total purchase price amounts to approximately €1.6 billion and will be settled through a combination of cash and newly issued DEUTZ shares. The cash component is expected to be funded through debt financing secured from a consortium of international banks, while the equity component will be settled through the issuance of new DEUTZ shares to the seller families.

As part of the transaction, the selling families are expected to become long-term oriented anchor shareholders of DEUTZ, holding up to 29.9% of DEUTZ’s increased share capital. The parties have also entered into an investment agreement governing their future relationship, including appropriate representation of the seller families on DEUTZ’s Supervisory Board.

FFG generated revenue of approximately €760 million in 2025 and is one of Europe’s leading providers of military land and special-purpose vehicles. The company is an established partner of the Bundeswehr and armed forces in more than 15 countries, with activities covering the production, maintenance and modernisation of wheeled and tracked military vehicles.

The acquisition is expected to accelerate DEUTZ’s profitable growth and bring its 2030 medium-term targets — €4 billion in revenue and a 10% EBIT margin — within reach ahead of schedule. The transaction also establishes DEUTZ as a top 10 player in the German defence market and creates a highly attractive listed platform for investors seeking exposure to the European defence industrial sector.

This transaction represents the largest and most transformative German defence deal since Steen Associates advised on the creation of KNDS in 2015, further underlining Steen’s long-standing role as a trusted advisor in landmark European defence transactions.

Completion of the transaction is subject to customary conditions, including regulatory clearances and approval of the capital increase by DEUTZ’s Extraordinary General Meeting. Closing is expected by the end of 2026 or in the first quarter of 2027.