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

EQS-Ad-hoc: DEUTZ AG / Key word(s): Mergers & Acquisitions/Takeover
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.

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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. The Company does not undertake to update these
forward-looking statements or to change them to reflect future events or
developments.


End of Inside Information

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27-Jun-2024 CET/CEST The EQS Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

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   Language:       English
   Company:        DEUTZ AG
                   Ottostraße 1
                   51149 Köln (Porz-Eil)
                   Germany
   Phone:          +49 (0)221 822 2491
   Fax:            +49 (0)221 822 3525
   E-mail:         svenja.deissler@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:    1935051

End of Announcement EQS News Service
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1935051 27-Jun-2024 CET/CEST