FFG, based in Flensburg, is one of Europe’s leading providers of military land and special-purpose vehicles. The company is an established partner of the Bundeswehr, NATO armed forces and Ukraine.
The purchase price will be paid partly in cash and partly through newly issued DEUTZ shares. The families that currently own FFG are expected to become long-term anchor shareholders of DEUTZ, with a stake of up to 29.9%.
DEUTZ said FFG will remain operationally independent and become the core of its new defence business unit. The group said the transaction is a milestone in its transformation into a broader industrial company under the Next DEUTZ strategy.
DEUTZ CEO Dr. Sebastian Schulte says: “Technological sovereignty, innovative capability, speed of execution: Joining forces with FFG, DEUTZ will become a leading national systems provider for military vehicles, propulsion systems, and energy solutions. Together, we will fulfill our responsibilities for security and future resilience in Europe, while securing value creation and high-quality jobs in Germany.”
FFG employs more than 1,100 people and produces, maintains and modernises wheeled and tracked military vehicles. Its portfolio includes armoured recovery vehicles, infantry fighting vehicles, armoured personnel carriers and special-purpose vehicles.
The company also develops proprietary platforms and acts as a manufacturing partner for NATO multinational armaments programmes. DEUTZ said FFG will provide expertise that will help make the group a systems provider for European defence programmes.
DEUTZ will add its propulsion portfolio, including combustion engines, hybrid drivetrains and decentralised field power supply solutions. The group will also contribute industrialisation, scaling expertise and its global service network.
Norbert Erichsen, spokesman for FFG’s shareholders, says: “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.”
DEUTZ said rapidly scalable production capacity will allow the combined group to contribute to the defence capabilities of Germany and Europe. It said the transaction would also keep strategically relevant defence technologies in German hands and secure high-quality jobs through long-cycle defence programmes.
The company said the acquisition is expected to accelerate profitable growth and bring its 2030 strategic targets within reach ahead of schedule. These targets include €4 billion in revenue and an EBIT margin of 10%.
FFG generated revenue of around €760 million in 2025 under German Commercial Code reporting and is currently in a phase of strong growth. DEUTZ said FFG’s order backlog is many times higher than its current revenue.
The new defence unit will sit alongside DEUTZ’s established Energy, Engines and New Tech business units. The group also said its service business remains a key growth driver across all segments.
DEUTZ expects the combination to generate significant revenue synergies, particularly in the Engines and Service business units. It also sees further opportunities through targeted cost synergies and expects the deal to have a significantly positive impact on the combined company’s EBIT margin.
The current FFG owners plan to support DEUTZ’s transformation as new anchor shareholders and aim to take two seats on the DEUTZ Supervisory Board after completion. DEUTZ said the parity-based composition of the Supervisory Board will be maintained and reaffirmed its commitment to co-determination.
DEUTZ will seek shareholder approval for a planned capital increase against contribution in kind at an extraordinary general meeting on 24 August 2026. Completion remains subject to several conditions, including shareholder approval and regulatory clearances, and is expected in late 2026 or the first quarter of 2027.
