Defense Sector Expansion Sparks Strategic Shift for Engine Manufacturer

Cologne-based engine producer Deutz AG is executing a dramatic strategic pivot, making a decisive entry into the flourishing defense industry through a dual-pronged approach. The company has secured its position in this high-growth market by acquiring SOBEK Group, a specialist in drone propulsion systems, utilizing €131 million raised through a successful capital increase. This strategic acquisition represents a fundamental departure from the company’s traditional engine business.

The ambitious acquisition is fully funded following Deutz’s placement of 13.9 million new shares with institutional investors, generating €131.1 million in fresh capital. Strong investor demand for this offering, which represented approximately ten percent of the company’s share capital, demonstrates significant market confidence in the new strategic direction.

Proceeds from the... Read more...