Strong Partners DEUTZ & FFG
DEUTZ is strengthening its defense business with Flensburger Fahrzeugbau Gesellschaft (FFG). This will create a leading system provider of military vehicles, drive systems, and energy solutions.
Scroll for more
Background
Two that make a perect team
FFG develops, modernizes, and maintains military vehicles. Headquartered in Flensburg, Germany, the company has more than 1,100 employees at nine locations and is a key partner of the Bundeswehr. It is also a supplier to armed forces in over 15 nations worldwide. From armored recovery and infantry fighting vehicles to personnel carriers and specialized systems – FFG supports around 30 vehicle platforms.
DEUTZ will enhance FFG’s portfolio with its drive systems, energy and storage solutions, industrial scaling – and a global service network. This will create a leading system provider of military vehicles, drive systems, and energy solutions. Made in Germany. Together with FFG, DEUTZ will thus become a leading system-provider for the defense sector.
What else links these two companies? Shared values, such as engineering expertise, innovation, quality, and reliability.
Dr. Sebastian Schulte
CEO DEUTZ AG
“With this strategic combination with DEUTZ, we are setting the course for the next generations. At the same time, it will create a German industrial group in the defense sector that combines the strengths of the two companies and provides impetus for their shared long-term development.”
Norbert Erichsen
Spokesman for FFG’s shareholders
“This represents the next milestone in DEUTZ’s transformation into a diversified industrial company. By acquiring FFG, DEUTZ is strategically expanding its activities in the defense business, a sector that is currently crucially important in both Europe and NATO. This underlines DEUTZ’s ambition to focus firmly on global growth trends, such as energy, drive solutions, and security, and to sustainably diversify its business.”
Dr. Dietmar Voggenreiter
Chairman of the DEUTZ Supervisory Board
Strengths
What both companies bring to the table
drive systems and energy
armed forces worldwide have put their trust in DEUTZ – including 14 NATO countries
- Worldwide service network and spare parts logistics
- Broad portfolio of drive systems – from tried-and-tested internal combustion engines to hybrid solutions
- Extensive experience in series production and industrialization expertise
- Mobile energy solutions for military applications – emergency power generators
vehicle manufacturing
supported vehicle platforms and deeply embedded within European defense systems
- Modernization and life extension of military vehicles
- Maintenance and repair of tanks, personnel carriers, and special-purpose vehicles
- Independent development of platforms, such as the ACSV (armored combat support vehicle)
- Integration of end-to-end vehicle systems, including on-board energy supply
Stronger together
Transformation
Next DEUTZ:
energy, drive solutions & security
Together with FFG, DEUTZ is significantly strengthening its defense business – and continuing its transformation into a diversified industrial company with determination. With solutions for energy, drive systems, and security – all underpinned by a global service network. All five business units benefit from it: Engines, Service, New Tech, Energy and Defense.
The combination of DEUTZ drive systems and FFG vehicle platforms increases value creation and boosts the utilization of existing sites in the engine business.
DEUTZ and FFG are combining their service networks. This means broader NATO coverage, faster response times, and additional revenue.
The use of hybrid drives and the provision of energy solutions in the field open up new opportunities for NewTech and Energy.
FAQ
Key Questions
Why is DEUTZ acquiring FFG?
The full acquisition of FFG represents the next milestone in DEUTZ’s transition from a traditional engine manufacturer to a resilient provider of systems and solutions. It is based on a clear industrial logic: FFG will provide its expertise in vehicles and platforms, along with strong ties to European defense programs. DEUTZ will complement this with a broad portfolio of drive systems and global experience in industrialization. Rapidly scalable production capacity will enable the two companies to make a major contribution to the defense capabilities of Germany and Europe. This move will also strengthen German industry because strategically important defense technologies will remain in German hands and thereby secure high-quality jobs.
Who is FFG?
Headquartered in Flensburg, Germany, FFG is one of Europe's leading providers of military land and special-purpose vehicles. It is an established partner of the Bundeswehr and of other armed forces in more than 15 countries. Its annual revenue is around €760 million. Employing over 1,100 people, FFG produces, maintains, and modernizes wheeled and tracked military vehicles. These include armored recovery vehicles, infantry fighting vehicles, armored personnel carriers, and special-purpose vehicles. FFG also develops proprietary platforms. As part of DEUTZ, FFG will be an independent vehicle manufacturer with projects that it develops entirely by itself.
On what terms is DEUTZ acquiring FFG?
The purchase price is € 1,6 billion and is to be paid partly in cash and partly in the form of newly issued DEUTZ shares. The families that currently own FFG are thus to become new, long-term anchor shareholders of DEUTZ, with a stake of just under 30 percent. An extraordinary general meeting will be held in order to vote on the shares to be issued for this purpose. DEUTZ gave notice of this meeting when it announced the acquisition.
How does the acquisition affect DEUTZ’s revenue?
The transaction will accelerate the DEUTZ Group’s profitable growth and is expected to bring the 2030 strategic targets (€4 billion in revenue, EBIT margin of 10%) within reach ahead of schedule. FFG is currently in a phase of strong growth and, based on its financial reporting in accordance with the German Commercial Code (HGB), generated revenue of around €760 million in 2025. The value of its orders on hand is many times higher than its current revenue.
What does this step mean for DEUTZ’s defense business?
The acquisition of FFG marks an important milestone in DEUTZ’s transformation into a diversified industrial company with five clearly defined business units: Engines, Service, NewTech, Energy, and Defense. Of these business units, Defense will of course become significantly more important as a result of the acquisition. FFG will form the core of DEUTZ’s defense business and thus become the new core element of the Defense business unit. However, it will remain independent from an operational perspective.
Will there be changes to the ownership structure and codetermination arrangements?
As part of the transaction, the families that currently own FFG will receive shares in DEUTZ with the aim that they remain long-term anchor shareholders with a stake of just under 30 percent. The Supervisory Board will continue to be made up of an equal number of shareholder representatives and employee representatives, with DEUTZ remaining firmly committed to codetermination.
Will the acquisition have any effect on the two companies’ existing German sites and jobs?
With the acquisition of FFG, DEUTZ is strengthening and further expanding Germany as a business location.
Will the acquisition result in any changes for partners of the two companies, such as customers and suppliers?
In the future, the two companies’ partners will be working with one of Germany’s leading system providers of military vehicles, drive systems, and energy solutions. There will be no changes to existing business relationships and contracts.
By when is the acquisition due to be completed?
Subject to the agreement of the extraordinary general meeting (EGM) and the necessary approvals being granted by the relevant authorities, the transaction is expected to be completed in late 2026 or in the first quarter of 2027.
Contact
Investor Relations
Contact persons
Lars Boelke
Head of Investor Relations, Communications & Marketing
Rolf Becker
Senior Manager Investor Relations
More information
Events
- Extraordinary General Meeting (EGM) 24.08.2026 – Virtual Event
Contact
Press
Contact persons
Lars Boelke
Head of Investor Relations, Communications & Marketing
Robert Hoenerbach
Spokesman
More information
Companies
Two companies.
One mission.
By providing reliable drive systems, decentralized energy supply technologies, and top-class service, DEUTZ offers solutions for the key areas of growth for the future: transportation, urbanization, food, energy, and defense. With around 6,500 people worldwide, 1,250 sales and service locations in nearly 180 countries, DEUTZ offers its customers an integrated range of products and services from a single source.
FFG Flensburger Fahrzeugbau Gesellschaft mbH (FFG) is a company with around 1,100 employees and over 150 years of tradition. Today, FFG is an internationally operating high-tech company which sets new standards in military technology and is an established systems house. There is good reason that customers from over 40 countries rely on "made in Flensburg" vehicle technology" and have so for many years.