German engine maker Deutz has agreed to buy defence manufacturer FFG Flensburger Fahrzeugbau for approximately €1.6 billion, marking a significant push into the armoured vehicle sector.
The acquisition will be funded through roughly €1 billion in debt and €600 million in newly issued Deutz shares, with FFG's current ownership family receiving a 29.9 percent stake in the combined group. A shareholder vote is scheduled for August 24, and the transaction is expected to close by late 2026 or early 2027.
FFG, which employs around 1,100 people and reported €760 million in revenue last year, holds an order backlog of €1.9 billion. The deal would add FFG's workforce to Deutz, which had 6,014 employees at the end of March.