Deutz AG acquire Torqeedo GmbH
Engine operations extended to include development and manufacture of electric and hybrid drive systems
DEUTZ AG are extending their operations to include the development and manufacture of hybrid and all-electric drive system solutions for off-highway applications, as part of their E-Deutz strategy.
To this end, the company has this week agreed to acquire 100% of the shares in Torqeedo GmbH, based near Munich. Founded 12 years ago and now operating in more than 50 countries on five continents, Torqeedo have significant expertise in components, software and system integration for electric drives.
The acquisition of Torqeedo, which will take effect tomorrow [1 October 2017], will form the nucleus of the E-Deutz strategy, strengthening Deutz’s expertise in innovative drive technologies and accelerating the market launch of electric and hybrid drive systems in the company’s core market segments.
Deutz will initially invest around €100 million in the E-Deutz strategy, the majority of which will be spent on the acquisition of Torqeedo, and will continue to operate the rapidly growing electric motors business under its established brand.
Dr Frank Hiller, chairman of the board of management of Deutz AG, said: ‘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.’
Deutz say they plan to bring the first products to market under the E-Deutz strategy in around two years’ time – far earlier than if they had gone down this route alone.
‘We are on our way to positioning ourselves as the market leader for innovative drive systems and will offer our customers not only our established solutions, but also hybrid and all-electric solutions,’ said Dr Hiller (pictured).
Torqeedo’s founder and chief executive officer, Dr Christoph Ballin, said: ‘Torqeedo have extensive know-how in respect of electric motors, battery management, power electronics and system integration. We look forward to working with Deutz’s development teams in order to play a key part in driving forward electrification in the off-highway sector.’
He added: ‘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.’
Alongside his role as CEO of Torqeedo, Dr Ballin will also take on a senior management position at Deutz AG, as head of strategy, while Torqeedo’s chief operating officer, Dr Ralf Plieninger, will become Deutz’s head of electrification.