DEUTZ acquires electric drive specialist Torqeedo
DEUTZ AG has acquired Torqeedo GmbH, based near Munich.
Torqeedo was founded 12 years ago and now operates in more than 50 countries on five continents. It 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.
“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.
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.
The acquisition of Torqeedo enables us to launch technically sophisticated, financially viable electrification solutions on the market more quickly. We are establishing our competitive position early on and believe that there will be very good market opportunities for us.”
Dr Frank Hiller, Chairman of the Board of Management of DEUTZ AG
“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 teams 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 industrialisation, purchasing, sales and service. We aim to make use of these opportunities and further accelerate our growth.”
Dr Christoph Ballin, Torqeedo’s founder and CEO
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. Some of the areas with potential are the downsizing of internal combustion engines and the related lowering of fuel consumption and operating costs. DEUTZ plans to bring the first products to market under the E-DEUTZ strategy in around two years’ time – far earlier than if it had gone down this route alone. DEUTZ will initially invest around €100 million, which includes the acquisition of Torqeedo, in order to speed up implementation of the new strategy.Alongside their role as managing directors of Torqeedo, Dr Christoph Ballin and Dr Ralf Plieninger will also take on senior management positions at DEUTZ AG: Dr Christoph Ballin has been appointed Head of Strategy while Torqeedo COO Dr Ralf Plieninger has been appointed Head of Electrification.
DEUTZ will consolidate Torqeedo from 1 October 2017 and is financing the acquisition from available cash. DEUTZ AG confirms its forecast for 2017: it expects a marked rise in revenue and a moderate increase in the EBIT margin – before positive exceptional items – compared with the previous year.