Deutz AG, a German manufacturer of engine and drive systems, said Wednesday that it has acquired Torqeedo GmbH, one of the best-known makers of electric marine engines.
Torqeedo will operate as an independent subsidiary of Deutz and continue to develop electric and hybrid marine propulsion systems.
“As part of Deutz, Torqeedo will realize substantial opportunities in the areas of industrialization, supply chain management, sales and service,” Christoph Ballin, CEO of Torqeedo, said in a statement.“We will use these to further accelerate the development of sustainable and modern mobility on the water.”
Torqeedo said it has averaged 35 percent growth annually since it entered the market in 2006. Sales in the last financial year were estimated at 25 million euros (about $29.5 million). Torqeedo employs 130 people at its locations in Gilching, Germany, Crystal Lake, Ill., and Bangkok.
Deutz has developed combustion engines that run on natural gas and diesel for the industrial, agricultural and commercial vehicle markets. Acquiring Torqeedo gives Deutz development expertise and product experience in all aspects of electric mobility.
“Acquiring Torqeedo will enable us to gain electrical expertise far more quickly than with a standalone solution and to electrify our product range where it makes sense from a technical and financial perspective,” Frank Hiller, chairman of the board of management of Deutz AG, said in a statement. “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.”
Deutz said alternative drives will play an important role in the company’s core segments. The E-Deutz strategy focuses on the development and manufacture of hybrid and electrified drive systems for off-highway applications.
Deutz said areas with potential applications include the downsizing of internal combustion engines and the related lowering of fuel consumption and operating costs. The first products under the E-Deutz strategy should be expected within two years.
“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,” Hiller said. “The acquisition of Torqeedo enables us to launch technically sophisticated, financially viable electrification solutions on the market more quickly.”
Torqeedo’s leadership will assume additional roles in the management of Deutz AG. Ballin will be the head of strategy; Torqeedo’s chief operating officer, Ralf Plieninger, is the head of electrification. As the new chief financial officer of Torqeedo, Heiko Brambach was appointed to the management board.