DEUTZ enters the field of electrification and acquires electric drive specialist Torqeedo
Cologne, 28 September 2017. DEUTZ AG has acquired Torqeedo GmbH, based near Munich. The company has significant expertise in components, software and system integration for electric drives. It is the global market leader and a system solution specialist for integrated electric and hybrid drives for boats.
Dr Frank Hiller, Chairman of the Board of Management of DEUTZ AG: “Acquiring Torqeedo will enable us to gain electrical expertise far more quickly than with a stand-alone solution and to electrify our product range where it makes sense from a technical and financial perspective. This will give us a significant advantage in a very fast-moving competitive environment. It also marks the start of our E-DEUTZ strategy, for which Torqeedo will be the catalyst.”
Alternative drives will also play an important role in DEUTZ’s core segments in future. DEUTZ is seizing the opportunities arising from the changing conditions by introducing the E-DEUTZ strategy to complement its innovative drive systems, which focuses on the development and manufacture of hybrid and electrified drive systems for off-highway applications. Torqeedo’s technological expertise will become the nucleus of the E-DEUTZ strategy, supplementing the Company’s system of modular technologies for reducing emissions and CO2. DEUTZ will initially invest around €100 million, which includes the acquisition of Torqeedo, in order to speed up implementation of the new strategy.
By acquiring Torqeedo, DEUTZ is gaining an experienced team of electrification specialists with an excellent track record, led by the company’s founder and CEO Dr Christoph Ballin. The team will continue to operate its rapidly growing business under its established brand. “Torqeedo has extensive know-how in respect of electric motors, battery management, power electronics and system integration. We look forward to working with DEUTZ’s development team in order to play a key part in driving forward electrification in the off-highway sector. Being part of the DEUTZ Group will create additional opportunities for Torqeedo in the areas of industrialization, purchasing, sales and service. We aim to make use of these opportunities and further accelerate our growth,” says Dr Christoph Ballin.
“DEUTZ has sought advice for this complex project from one of the leading tech investment banks, ACXIT Capital Partners, due to their outstanding track record and proven competence in executing technology focused and transformational transactions. Apart from the exceptionally efficient structuring and execution of the transaction, the ACXIT team advised DEUTZ on all crucial strategic as well as capital market related aspects throughout the entire process,” said Dr Frank Hiller.
“Considering the tremendous strategic importance for our shareholder value, ACXIT Capital has played a pivotal role in finalizing this international transaction to our complete satisfaction, as well as communicating this company milestone to investors. Furthermore they did so within an ambitious timeframe and tight transaction parameters,” added Gerhard Gehweiler, Senior Vice President and Project Leader for DEUTZ AG.
ABOUT THE DEUTZ GROUP
DEUTZ is one of the world’s leading manufacturers of innovative drive systems. Its core competences are the development, production, distribution and servicing of drive systems for professional applications. The engine specialist offers a broad spectrum of liquid-cooled and air-cooled engines with capacities ranging from 19 kW to 620 kW that are used in construction equipment, agricultural machinery, material handling equipment, stationary equipment, commercial vehicles, rail vehicles and other applications. (www.deutz.com)
ABOUT TORQEEDO GMBH
Torqeedo is the leading provider of electric drive systems for watercraft. Founded in 2005 in Starnberg, Bavaria, the company develops and manufactures electric and hybrid drives from 0.5 kW to 100 kW for leisure and commercial applications. Torqeedo’s products are characterized by an uncompromising focus on high-tech, maximum efficiency and complete system integration. Founded 12 years ago it now operates in more than 50 countries on five continents. (www.torqeedo.com)
ACXIT is a leading international corporate finance and investment advisory firm for mid-market clients and entrepreneurs in Europe and beyond. Since 1998, ACXIT offers its clients comprehensive corporate finance advisory services including M&A and capital markets advisory as well as restructuring, equity/debt and strategic advisory. As an independent, privately owned firm we maintain offices in Frankfurt, Berlin, Munich, Leipzig, Zurich and Hong Kong as well as strong alliances in France, China, India and the USA. (www.acxit.com)
ACXIT Capital Holding GmbH
Bockenheimer Landstraße 24
60323 Frankfurt am Main
Dr. Ingmar Ackermann, Managing Partner
Johannes H. Lucas, Managing Partner
Jens Tschauder, Managing Partner
Christian Stippler, Director
Dr. Jochen Kasper, Associate
Samuel Menghistu, Analyst
Benedikt Gentner, Analyst