Deutz expands energy business with Frerk acquisition

Deutz announced it has signed a purchase agreement to acquire all the shares in Frerk Aggregatebau GmbH, a European provider of high-end emergency power systems primarily used in data centers, hospitals and other critical infrastructure. The acquisition joins the growing list of business the company has acquired in order to build and diversify its business segments and product portfolio.

Frerk is a systems integrator for diesel and gas emergency power systems and is particularly well established in the demanding data center segment, which accounts for around 50% of its revenue. In addition to gen-sets, the company supplies whole turnkey systems designed to ensure an uninterrupted power supply in the event of an outage. It is headquartered in Nidersachsen in Northern Germany and has seven sites throughout the country, providing direct access to leading European data center and network operators.

Dr. Sebastian Schulte, CEO and chairman of the Board of Management, Deutz AG

With the acquisition of Frerk, Deutz further establishes itself as a global provider of emergency power systems with a particular focus on data centers, noted Deutz CEO Dr. Sebastian Schulte – a segment that is currently growing by 15% to 20% per year. Its energy business segment also includes Blue Star Power Systems Inc., a U.S.-based supplier of generator sets that the company acquired in 2024.

Deutz said it intends to create a globally scalable portfolio for decentralized energy supply. “We are thus continuing to forge ahead with our strategy of putting Deutz on a broader footing and making it less dependent on the cyclical internal combustion engine business,” said Schulte. “In doing so, we are maintaining a clear focus on fast-growing markets in which we can deploy our strengths and expertise.”

Marc Hiller, managing director and a co-shareholder of Frerk, welcomed the move, noting, “We are very positive about what we have achieved and built together at Frerk. A strong partner is needed if we are to unlock our further potential for growth as a systems integrator in the data center segment and to facilitate the increasingly important servicing of our systems. We are delighted to have found this partner in Deutz.”

Hiller, who will remain as managing director, said Frerk will benefit from Deutz’s strong brand, global service network and financial strength. “Together, we will globalize the Deutz energy business and raise ourselves to the next level.”

Deutz expects the acquisition of Frerk to provide additional profitable revenue of around €100 million. Building on this, revenue in the energy business is expected to increase to approximately €500 million by 2030 through both organic growth and growth by acquisition.

The total purchase price to be paid was not provided but is said to be in the upper double-digit millions of euros. Completion of the transaction is subject to the usual provisos, particularly approval from the anti-trust authorities, and is expected to take place in the first quarter of 2026.

New organizational structure

Deutz also announced that it will introduce a new organizational structure with five independent business units on January 1, 2026. The move stems from the company’s entry into new markets – such as energy and defense – which have resulted in growing differences between the requirements of the individual areas of its business.

In addition to a leaner group headquarters, the new organizational structure will comprise five business units: Defense (headed up by Marco Herre), Energy (David Evans), Engines (Markus Villinger), NewTech (Bert van Hasselt) and Service (Andreas Schmidt).

The new organizational structure will result in changes to the way that Deutz is managed in the future. The Board of Management will be supported in its running of the company by an expanded and international Executive Team, comprising the members of the Board of Management, the heads of the five business units and Katharina Krüger, who is responsible for strategy, transformation and human resources. The business units and centralized corporate functions will thus be much more involved in key decisions of the company.

With each business unit assuming operational responsibility for the different areas of business, Deutz COO Dr. Petra Mayer, who has been in post for more than three years, will step down from the Board of Management on December 31, 2025, as part of the reorganization. She will focus on her Supervisory Board roles going forward.

“On behalf of the entire Supervisory Board, I would like to offer my sincere thanks to Petra Mayer for her dedication and invaluable input over the past three years. Her contribution to raising Deutz operating performance, in particular, has helped the company to make lasting progress. We wish her all the best and every success for the future,” said Dr. Dietmar Voggenreiter, chairman of the Supervisory Board of Deutz AG.