DEUTZ Raises €179 Million Through Share Placement Amid Expansion
German industrial company DEUTZ raised €179 million through an accelerated share placement, issuing 15.26 million new shares at a price of €11.70 each to institutional investors. The move increased the company's share capital by 10%, leading to dilution for existing shareholders and causing its stock to drop around 5% initially before partially recovering. The funds will be used to optimize DEUTZ’s balance sheet and support future growth, particularly following its recent €1.6 billion acquisition of military vehicle manufacturer FFG Flensburger Fahrzeugbau in July. The deal significantly expanded the company's presence in defense markets and was approved by shareholders with 99.7% support. Despite concerns over dilution, DEUTZ has shown strong operational performance: first-half revenue rose nearly 11%, new orders increased 29%, and adjusted EBIT surged 43%. The acquisition is expected to help the company reach its €4 billion revenue target by 2030 ahead of schedule.
