DEUTZ to Acquire FFG Flensburger Fahrzeugbau and Enhance its Position in the Defence Scenario

DEUTZ is playing its trump card, taking a significant step forward in the defence sector, as demonstrated by the scale of both the transaction and the volumes involved in this latest deal. DEUTZ has entered into an agreement to acquire 100% of the shares in FFG Flensburger Fahrzeugbau Gesellschaft. Headquartered in Flensburg, Germany, FFG is one of Europe’s leading providers of military land and specialpurpose vehicles and an established partner of the Bundeswehr and armed forces in NATO and Ukraine.

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 up to 29.9%.

FFG and DEUTZ Join Forces to Support NATO

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 and is a manufacturing partner for NATO multinational armaments
programs.

The combination is based on a clear industrial logic: FFG will contribute the areas of
expertise that will make DEUTZ a systems provider for European defense programs.
DEUTZ complements this with its propulsion portfolio – ranging from conventional
combustion engines and hybrid drivetrains to solutions for decentralized power supply in
the field – as well as its expertise in industrialization and scaling and its global service
network. FFG will form the new core of the DEUTZ Defense business unit, remaining
independent from an operational perspective.

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.

The acquisition of FFG marks an important milestone in DEUTZ’s transformation into a
diversified industrial company in line with the Next DEUTZ strategy. Going forward, the
Defense business unit – with FFG as the new core element – will become a further
cornerstone of the DEUTZ Group alongside the established Energy, Engines and New
Tech business units and the service business, which is a key driver of growth across all
segments.
DEUTZ expects the combination to generate significant revenue synergies – particularly
in the Engines and Service business units – as well as further opportunities through
targeted cost synergies.

A Stake up to 29,9% for the Previous Owners

With a stake of up to 29.9%, the families that own FFG at present will become new anchor
shareholders of DEUTZ and will constructively support DEUTZ over the long term as it
continues with its transformation. In line with their intended investment, the families that
currently own FFG are aiming to take two seats on the DEUTZ Supervisory Board once the
transaction has been completed.

Approval for the planned capital increase against contribution in kind is to be obtained
from DEUTZ’s shareholders at an Extraordinary General Meeting to be held as a virtual
event on August 24, 2026. Completion of the transaction is dependent on a number of
conditions, including the agreement of the shareholders at the Extraordinary General
Meeting as well as the necessary approvals being granted by the relevant authorities.
Once all conditions have been met, completion is expected in late 2026 or in the first
quarter of 2027.