German engine manufacturer Deutz AG has entered into an agreement to acquire FFG Flensburger Fahrzeugbau Gesellschaft mbH, a manufacturer of military equipment, in order to expand its presence in the defense sector. This is reported in a Deutz press release.
The deal is valued at 1.6 billion euros ($1.8 billion), including 1 billion euros in cash and 600 million euros through the issue of Deutz shares.
From the point of view of management Deutz, the deal will lead to a "significant increase" revenue of up to 4 billion euros by 2030 due to FFG's broad customer base and orders worth 1.9 billion euros.
Previously, Deutz acquired shares in ARX Robotics, the UAV manufacturer Tytan Technologies GmbH and Sobek. In addition, Deutz and ARX are launching UAV production at the Deutz plant in Ulm (Germany).
FFG is a German manufacturer of military and special equipment. The headquarters is located in Flensburg (Germany). The company operates two manufacturing plants in Flensburg and is building a third. 90% of FFG's clients are NATO members.
Deutz AG is a German manufacturer of innovative drive systems and one of the world leaders in the production of gas and diesel engines. The headquarters is located in Cologne (Germany).
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