RCS - Deutz AG - DEUTZ acquires genset manufacturer

Deutz AGAnnouncement

27/06/2024 18:30

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RNS Number : 2339U  Deutz AG  27 June 2024

 DEUTZ AG: DEUTZ acquires genset manufacturer Blue Star Power Systems, Inc.

27-Jun-2024 / 17:37 CET/CEST

Disclosure of an inside information acc. to Article 17 MAR of the Regulation
 (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.

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

Cologne, June 27, 2024 DEUTZ AG (ISIN DE0006305006), based in Cologne
 (Germany), today signed an agreement through its wholly owned indirect
 subsidiary DEUTZ Corporation, based in Atlanta (USA), to acquire all of the
 shares in Blue Star Power Systems, Inc. ('Blue Star Power Systems') from Blue
 Star Power Systems Holdings, Inc. Currently privately run, the company is
 headquartered in North Mankato, Minnesota (USA), and develops, manufactures,
 and sells generator sets (gensets) - predominantly diesel and gaseous at
 present - in the 20 kWe to 2,000 kWe power range in the USA and Canada. Blue
 Star Power Systems recorded revenue in the high-double-digit millions of US
 dollars and an EBITDA margin in the low-double-digit percentage range in 2023.

 Based on Blue Star Power Systems' current level of orders on hand and its own
 market analysis, the DEUTZ Group ('DEUTZ') anticipates that the deal will
 result in additional annual revenue ranging from more than US$ 100 million
 to (in the medium term) more than US$ 150 million, with an EBITDA margin
 above DEUTZ's current margin and a contribution to EBITDA that, on average, is
 likely be in the low-double-digit millions of US dollars.

 To finance the acquisition, DEUTZ is currently examining various funding
 structures. In the event that the transaction is fully financed from
 borrowing, the equity ratio is likely to decrease by a low-single-digit
 percentage amount, thus remaining well above the target figure of more than
 40 percent.

 Launched by the Company at the start of 2023, the aims of the Dual+ strategy
 include building up a portfolio that is fit for the future and increasing
 DEUTZ's resilience by expanding its product ecosystem. The acquisition of Blue
 Star Power Systems represents the first step in systematically establishing a
 new business unit focused on decentralized energy supply. The acquisition will
 help DEUTZ to significantly accelerate its expansion into the rapidly growing
 and less cyclical energy market, at the same time increasing the Company's
 presence in North America.

 Completion of the transaction is subject to the usual conditions, particularly
 the necessary regulatory approvals, and is expected to take place in the
 second half of 2024.

 Contact

 DEUTZ AG / Mark Schneider / Head of Investor Relations, Communications &
 Marketing

Tel: +49 (0)221 822 3600 / Email: mark.schneider@deutz.com

 DEUTZ AG / Svenja Deißler / Senior Manager Investor Relations & ESG

Tel: +49 (0)221 822 2491 / Email: svenja.deissler@deutz.com

 Forward-looking statements This ad hoc disclosure may contain certain
 forward-looking statements based on current assumptions and forecasts made by
 the DEUTZ management team. Various known and unknown risks, uncertainties, and
 other factors may lead to material differences between the actual results, the
 financial position, or the performance of the DEUTZ Group and the estimates
 and assessments set out here. These factors include those that DEUTZ has
 described in published reports, which are available at www.deutz.com
 (https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=266becd3f383fa416276b68bdaea99f5&application_id=1935051&site_id=news_data&application_name=news)
 . The Company does not undertake to update these forward-looking statements or
 to change them to reflect future events or developments.

 

 

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