"Deutz AG acquires Rolls-Royce division, expanding engine offerings to agriculture
„Deutz AG“ and „Power Systems“, a division of „Rolls-Royce“ have completed a transaction whereby „Deutz AG“ has taken over the sales and service activities for various „Daimler Truck“ industrial engines. The announcement was made on 1 August by both companies. The transaction specifically relates to engines ranging from 5 to 16 litres in displacement and up to 480 kW.
"With the takeover of the sales and service activities of "Rolls-Royce Power Systems", we have taken another important step in the further expansion of our modern internal combustion engine business," says Dr. Sebastian C. Schulte, CEO of „Deutz AG“. This is a key element for „Deutz AG“ to play an active role in the consolidation of the market and another step in the implementation of our "Dual+" strategy.""
With this transaction, „Deutz AG“ takes over the distribution of the "mtu Classic" model series and the "mtu 1000-1500" engine series, which are based on the three "Daimler Truck" engine platforms.
These engines are used in a wide range of off-road applications, mainly in the agricultural machinery and construction equipment sectors.
As part of the takeover, it is expected that „Deutz AG“ will service the engines already in use. After a transitional phase, it is foreseen that from 1 January 2025 only authorised partners of „Deutz AG“ will be able to carry out this activity.
The takeover follows an alliance between „Deutz AG“ and „Daimler Truck" for the development and sale of medium and high power engines (MDEG and HDEP platforms) in the SUV segment. The two companies entered into this alliance in 2023, and is scheduled to start in 2028. The agreement, under which „Deutz AG“ will take over „Rolls-Royce"'s sales and service activities, means that from now on „Deutz AG“ will take over „Rolls-Royce"'s sales and service activities four years earlier than the existing alliance with "Daimler Truck" will start selling SUV variants of these engines, as well as distributing the older "mtu Classic" model series ("Daimler Truck" OM900 and OM460 engine series).
As a result of this transaction, „Deutz AG“ expects to generate additional annual revenues of around €300 million and an EBIT margin higher than the Group's current EBIT margin. The purchase price for the engine portfolio is in the double-digit millions of euros. The takeover of the sales and service activities of „Deutz AG“ will result in the transfer of more than 50 employees from „Rolls-Royce" to „Deutz AG“.
