German Engineering Company DEUTZ Acquires Armored Vehicle Manufacturer FFG

German engineering company DEUTZ has signed an agreement to fully acquire the armored vehicle manufacturer Flensburger Fahrzeugbau Gesellschaft (FFG) for 1.6 billion euros.

DEUTZ announced this in a press release.

According to the company, the merger will create a new leading European systems supplier of military equipment, power plants, and energy solutions.

The acquisition price is 1.6 billion euros. Part of the amount will be paid in cash, and part in new DEUTZ shares. As a result, the families that currently own FFG will become new long-term anchor shareholders of DEUTZ, holding a stake of up to 29.9%.

“Technological sovereignty, innovative capabilities, and speed of implementation: by joining forces with FFG, DEUTZ will become a leading national systems supplier of military equipment, power plants, and energy solutions. Together, we will fulfill our commitments to Europe’s security and future sustainability, while continuing to generate added value and high-quality jobs in Germany,” said DEUTZ CEO Dr. Sebastian Schulte.

The completion of the acquisition is subject to a number of conditions, including shareholder approval and the receipt of necessary approvals from the relevant authorities. Once all conditions are met, the transaction is expected to close in late 2026 or in the first quarter of 2027.

FFG will contribute its expertise and serve as the new foundation for DEUTZ Defense, while retaining its operational independence.

DEUTZ, for its part, will complement its military product line with its portfolio of power systems—ranging from traditional internal combustion engines and hybrid drives to solutions for decentralized power supply in field conditions.

FFG

Headquartered in Flensburg, Germany, FFG is one of Europe’s leading suppliers of military ground vehicles and special-purpose vehicles, as well as a long-standing partner of the Bundeswehr and the armed forces of NATO countries and Ukraine. In addition to Germany, FFG has subsidiaries in Israel, Ukraine, and Canada.

The company employs more than 1,100 people. It manufactures, maintains, and modernizes wheeled and tracked military vehicles, including armored recovery and evacuation vehicles, armored personnel carriers, and special-purpose vehicles. FFG also develops its own platforms and serves as a manufacturing partner in multinational NATO armament programs.

In early February 2026, the company held a groundbreaking ceremony for Plant 3 — an armored vehicle manufacturing facility in Germany.

The new facility is planned to produce new models of equipment, including CAVS armored combat vehicles based on the Patria 6×6 APC, as well as WiSENT 2 and ACSV engineering vehicles. Production is scheduled to begin in the first quarter of 2027.