COLOGNE, GERMANY - EQS Newswire - 27 June 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.