RCS - Deutz AG - DEUTZ enters into cooperation with Daimler Truck

Deutz AGAnnouncement

30/01/2023 09:30

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RNS Number : 2423O  Deutz AG  30 January 2023

 DEUTZ AG / Key word(s): Alliance

DEUTZ AG: DEUTZ enters into cooperation with Daimler Truck to develop and
 market medium- and heavy-duty engines

30.01.2023 / 08:39 CET/CEST

The issuer is solely responsible for the content of this announcement.

·      DEUTZ takes an important step in further expanding its modern
 internal combustion engine business.

 ·      Daimler Truck will take a 4.19 percent stake in DEUTZ AG,
 becoming a large shareholder.

 Today, DEUTZ AG (DEUTZ) and Daimler Truck AG (Daimler Truck) signed agreements
 giving DEUTZ access to Daimler engines by end of the decade. These include
 both medium-duty engines (Daimler Truck MDEG series), which are suitable for
 use in applications such as construction equipment, and heavy-duty engines
 (Daimler Truck HDEP series), which can be used to power heavy agricultural
 machinery, for example. As a result, DEUTZ will be able to attract new
 customer groups, save on development costs, expand its range of modern
 internal combustion engines, and thereby lay the foundations for further
 growth in this business.

 The cooperation between the two companies, which is supported by the stake
 Daimler Truck takes in DEUTZ, is focused on two areas:

 1.   DEUTZ will acquire the on-highway IP to Daimler Truck's medium-duty
 MDEG engines so that it can further develop them itself, including for use in
 off-highway applications such as agricultural machinery and construction
 equipment.

 2.   DEUTZ will acquire license rights from Daimler Truck so that it can
 further develop the heavy-duty Daimler Truck HDEP series for use in
 off-highway applications. It will also distribute these engines independently.

 The cooperation provides for various production arrangements. The heavy-duty
 engines will continue to be built by Daimler Truck at the Mercedes-Benz plant
 in Mannheim and shipped to DEUTZ for final assembly, whereas the medium-duty
 engines will be completely produced at DEUTZ. The engine variants that will be
 marketed by DEUTZ are scheduled to go into production in 2028.

 The cooperation between the two companies is a first sign of DEUTZ's recently
 announced Dual+ strategy, under which it will not only step up the
 development of a climate-neutral product portfolio but also optimize and
 further develop its classic engines. "The cooperation with Daimler Truck will
 significantly improve our starting position in a consolidating market as we
 will gain access to technologically advanced engines and will be able to
 attract new customer groups at the same time. Heavy-duty applications and
 agriculture still require conventional powertrain systems based on internal
 combustion engines, and these can be made more environmentally friendly by
 running them on synthetic fuels. In the next few years, we will therefore not
 only enhance our climate-neutral product portfolio but also further expand our
 classic engine business," says DEUTZ CEO Dr. Sebastian C. Schulte.

 Under its new strategy, DEUTZ announced in mid-January that, as well as
 investing in a green product portfolio, it also intends to establish itself
 permanently among the top three independent engine manufacturers, including
 through acquisitions and cooperations. The Company is therefore intending to
 play an active part in the consolidation of the engine market.

 Dr. Andreas Gorbach, member of the Board of Management of Daimler Truck AG and
 responsible for Truck Technology: "We are delighted to be forming a
 partnership with the established and independent drive specialist DEUTZ. In
 line with our strategic focus on transportation that is carbon-neutral at
 local level, we announced last year that Daimler Truck would not be investing
 any more of its own money in the further development of its medium-duty
 engines for the Euro VII emissions standard."

 Payment for the two transactions is in the mid-double-digit millions of euros.
 DEUTZ will pay a cash sum in installments for the acquisition of the license
 rights for the heavy-duty engines. To acquire the on-highway IP for the
 medium-duty engines, DEUTZ will use the existing authorized capital to issue
 approx. 5.285 million new no-par-value bearer shares by way of a capital
 increase in kind. Daimler Truck will hold 4.19 percent of the issued capital
 of DEUTZ AG. The new DEUTZ shares will be admitted for trading after entry in
 the commercial register.

 Final completion of the transactions is subject to an audit of the non-cash
 contributions and to the usual approvals from the authorities.

 For further information on this press release, please contact:

DEUTZ AG

Christian Ludwig

Senior Vice President Communications &

Investor Relations

Tel: +49 (0)221 822 3600

Email: Christian.Ludwig@deutz.com (mailto:Christian.Ludwig@deutz.com)

 

 About DEUTZ AG

 DEUTZ AG, a publicly traded company headquartered in Cologne, Germany, is one
 of the world's leading manufacturers of innovative drive systems. Its core
 competencies are the development, production, distribution, and servicing of
 drive solutions in the power range up to 620 kW for off-highway applications.
 The current portfolio extends from diesel, gas, and hydrogen engines to hybrid
 and all-electric drives. DEUTZ drives are used in a wide range of applications
 including construction equipment, agricultural machinery, material handling
 equipment such as forklift trucks and lifting platforms, commercial vehicles,
 rail vehicles, and boats used for private or commercial purposes. DEUTZ has
 around 4,750 employees worldwide and over 800 sales and service partners in
 more than 130 countries. It generated revenue of around €1.6 billion in
 2021. Further information is available at www.deutz.com
 (http://www.deutz.com) .

30.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News
 - a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
 Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

 About DEUTZ AG

DEUTZ AG, a publicly traded company headquartered in Cologne, Germany, is one
of the world's leading manufacturers of innovative drive systems. Its core
competencies are the development, production, distribution, and servicing of
drive solutions in the power range up to 620 kW for off-highway applications.
The current portfolio extends from diesel, gas, and hydrogen engines to hybrid
and all-electric drives. DEUTZ drives are used in a wide range of applications
including construction equipment, agricultural machinery, material handling
equipment such as forklift trucks and lifting platforms, commercial vehicles,
rail vehicles, and boats used for private or commercial purposes. DEUTZ has
around 4,750 employees worldwide and over 800 sales and service partners in
more than 130 countries. It generated revenue of around €1.6 billion in
2021. Further information is available at www.deutz.com
(http://www.deutz.com) .

 

 

30.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News
- a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

 Language:     English
 Company:      DEUTZ AG
               Ottostraße 1
               51149 Köln (Porz-Eil)
               Germany
 Phone:        +49 (0)221 822 0
 Fax:          +49 (0)221 822 3525
 E-mail:       ir@deutz.com
 Internet:     www.deutz.com
 ISIN:         DE0006305006
 WKN:          630500
 Indices:      SDAX
 Listed:       Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated
               Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate
               Exchange
 EQS News ID:  1545915

 

 End of News  EQS News Service

1545915  30.01.2023 CET/CEST

 

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