# Propulsion supplier Deutz closes €1.6 billion acquisition of military vehicle maker FFG
Deutz expects FFG to contribute more than €1 billion in revenue in 2027 as the core of its defense business.
Published 2026-11-08 by TGOs. Canonical: https://tgos.io/news/2026/11/08/propulsion-supplier-deutz-closes-1-6-billion-acquisition-of/
Deutz has completed its acquisition of FFG Flensburger Fahrzeugbau, a producer of wheeled and tracked military vehicles.[1][2] It announced the completion with its Nov. 5 nine-month results.[1]
FFG is to remain operationally independent while forming the core of Deutz's defense business unit.[2] Deutz expects it to contribute more than €1 billion in additional revenue in 2027.[1] Its forecast puts FFG's adjusted EBITDA margin above 20% for that year.[1]
The July 9 agreement covered 100% of FFG's shares.[2] It set a €1.6 billion purchase price, payable partly in cash and partly in newly issued Deutz shares.[2]
FFG generated around €760 million in revenue in 2025 under German Commercial Code accounting, Deutz reported in July.[2]
FFG produces, maintains and modernizes vehicles including armored recovery vehicles, infantry fighting vehicles and armored personnel carriers.[2] Deutz describes FFG as an established partner of the Bundeswehr and armed forces in NATO and Ukraine.[2]
Deutz's defense business recorded €89.2 million in new orders in the first nine months of 2026.[1] The company expects FFG's inclusion to increase defense's share of group orders substantially from the first quarter of 2027.[1]
## Why it matters
The acquisition combines FFG's military vehicle expertise with Deutz's propulsion portfolio.[2] Deutz expects that combination to make it a systems provider for European defense programs.[2]
## Sources
1. Deutz nine-month 2026 results release, Nov. 5, 2026
2. Deutz FFG agreement release, July 9, 2026