Deal is expected to create a German group focused on military vehicles, propulsion systems and energy solutions; completion remains subject to regulatory and shareholder approvals
German engine and machinery manufacturer DEUTZ has signed an agreement to acquire Flensburger Fahrzeugbau Gesellschaft, known as FFG, in its entirety. The company specializes in the production, maintenance and modernization of military land vehicles. The transaction was valued at €1.6 billion, approximately R$10.3 billion in a direct currency conversion.
The transaction marks a significant expansion of DEUTZ’s presence in the defense sector. With the incorporation of FFG, the group intends to bring armored vehicles, propulsion systems and decentralized energy supply solutions for military applications under the same corporate structure.
Payment will be made through a combination of financial resources and newly issued DEUTZ shares. The families that currently control FFG could become long-term shareholders in the company, with a stake of up to 29.9%.
Despite the announcement, the acquisition has not yet been completed. The deal remains subject to shareholder approval and authorization from the relevant regulatory authorities. Provided that all conditions are met, the transaction is expected to be completed in late 2026 or during the first quarter of 2027.
FFG will become the foundation of DEUTZ’s defense division
Following completion of the acquisition, FFG is expected to become the main operational base of the DEUTZ Defense division. The military vehicle manufacturer, however, will continue to operate with administrative independence.
DEUTZ will contribute mainly through its expertise in propulsion systems. Its portfolio includes internal combustion engines, hybrid powertrains and equipment for decentralized energy generation, a technology regarded as strategic for military operations conducted far from conventional supply networks.
According to DEUTZ CEO Sebastian Schulte, the combination of the two companies is expected to strengthen Germany’s industrial capabilities in the defense and energy sectors while preserving jobs and technical expertise in the country.
FFG works with wheeled and tracked vehicles
Headquartered in Flensburg, northern Germany, FFG employs more than 1,100 people and also maintains operations in Israel, Ukraine and Canada. The company has worked for decades as a supplier to the Bundeswehr, the German Armed Forces, and also serves other NATO countries and Ukraine.
The company manufactures, restores and modernizes wheeled and tracked military vehicles. Its portfolio includes armored recovery vehicles, troop carriers, engineering platforms and special-purpose models developed for different types of missions.
FFG also participates in multinational defense programs as an industrial partner and develops its own platforms. Among its best-known products is the WiSENT family, based on main battle tank chassis and configured for engineering, recovery and field-support tasks.
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Source and images: DEUTZ / FFG. This content was created with the help of AI and reviewed by the editorial team.
