Deutz to buy FFG and create FFG-Defense

Deutz has entered into an agreement to purchase Flensburger Fahrzeugbau Gesellschaft (FFG), a leading provider of military and special-purpose vehicles. The deal was valued at around €1.6 billion (approx. $1.83 billion).

What will be known as FFG-Defense will become the Deutz Group’s dedicated defense platform.

The deal can be expected to make Deutz, known for its engines and other power technologies, a leading provider of complete military vehicles.

FFG WiSENT military vehicle (Photo: FFG)

For its part, FFG-Defense will benefit from the industrial capabilities and international sales and service reach of Deutz.

Speaking about the agreement, Dr. Sebastian Schulte, CEO at Deutz, said: “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 fulfil our responsibilities for security and future resilience in Europe, while securing value creation and high-quality jobs in Europe.”

Norbert Erichsen, chair of the family shareholders at FFG, said: “Joining the Deutz Group is a strategic decision for the long-term development of FFG. By combining the complementary strengths of both companies we are creating the conditions to accelerate our development for many years to come.”

Operational management at FFG is expected to remain unchanged when it becomes part of the Deutz Group.

As it stands, no vehicle produced by FFG currently uses a Deutz engine or other power solution; as an integrator, FFG could have used Deutz engines on an ad hoc basis, but no models are fitted as standard with products from the engine OEM.

This could change with the agreement to acquire FFG, which might see Deutz exploring integration of its own engines and systems. This would likely be across lighter vehicles with lower GVWs.

Models currently produced by FFG include the WiSENT 1. Based on the same platform as the Leopard 2 tank, this is an adaptable armoured vehicle which can be used across a wide range of military support applications. The vehicle has seen action with various militaries around the world.