German engine manufacturer Deutz AG, whose power units have been used for decades in tractors, agricultural machinery, and industrial equipment, is preparing the largest acquisition in its more than 160-year history. The company plans to acquire FFG Flensburger Fahrzeugbau Gesellschaft, a German manufacturer and service provider of military vehicles, in a deal valued at around €1.6 billion.
The planned takeover represents a major strategic shift for Deutz AG, strengthening its position in the defense industry, a sector where the company has been increasing its investments since 2025. It is important to note that Deutz AG is not the manufacturer of Deutz-Fahr tractors but an independent producer of engines and power solutions.
Deutz expands into the defense sector
By acquiring FFG, Deutz aims to significantly expand its activities in the military sector. The German company FFG Flensburger Fahrzeugbau Gesellschaft develops, manufactures, maintains, and modernizes tracked and wheeled military vehicles for the German Bundeswehr, other NATO members, and Ukraine.
FFG’s product portfolio includes armored recovery vehicles, infantry fighting vehicles, armored personnel carriers, and other specialized military platforms. Following the acquisition, FFG is expected to continue operating as a separate company while becoming the central part of Deutz’s future defense division.
The transaction has not yet been completed. It still requires approval from Deutz shareholders and relevant regulatory authorities. The proposal will be presented for a vote at an extraordinary shareholders’ meeting scheduled for August 24, 2026.
FFG employs more than 1,100 people
FFG currently employs more than 1,100 workers and generated approximately €760 million in revenue in 2025. According to Deutz, the company’s order backlog is several times larger than its annual revenue, highlighting strong future growth potential.
One of FFG’s main advantages is that it manages almost the entire production process internally. The company handles everything from vehicle development and engineering to manufacturing, maintenance, delivery, and after-sales support.
Among FFG’s best-known products are the Wisent armored recovery vehicle and the ACSV tracked carrier, both designed for demanding military operations.
Deutz continues Its business transformation
The planned acquisition of FFG is the latest step in Deutz’s strategy to expand beyond its traditional role as a supplier of engines for agricultural and industrial machines.
In 2025, the company acquired Sobek, a manufacturer of propulsion systems for unmanned aerial vehicles (UAVs), and later invested in ARX Robotics and Tytan Technologies. Deutz has also established partnerships with HDC Solutions, a developer of mobile power systems, and Frerk Aggregatebau GmbH, a German specialist in generators and energy solutions.
With the planned FFG takeover, Deutz AG is positioning itself as a broader technology company, combining its long experience in engine manufacturing with growing capabilities in defense technology, mobility, and energy systems.
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