Deutz, with Freshfields, acquires a diesel engine business from Rolls-Royce

Global law firm Freshfields Bruckhaus Deringer is advising listed Deutz Aktiengesellschaft on the acquisition and subsequent integration of the sales and service business for selected industrial engines in the 5-16-liter range with a maximum power output of up to 480 kW from Rolls-Royce Power Systems AG, a subsidiary of Rolls-Royce Holdings plc, which is listed in the UK. These industrial engines are used in various off-highway applications, primarily in the agricultural, industrial and construction machinery sector. Deutz will also take over the service activities for the engines already in use.

This transaction is related to the cooperation with Daimler Truck that Deutz concluded at the beginning of 2023 to develop and market medium- and heavy-duty engines (MDEG and HDEP platforms) in the off-highway segment; Freshfields also advised Deutz on this cooperation. With the agreed takeover of the sales and service operations from Rolls-Royce Power Systems, Deutz is taking over the marketing of the off-highway variants of these engines from 2024 and, in addition, the distribution of the older mtu Classic series (Daimler Truck engine series OM900 & OM460). Deutz expects additional annual revenue from the acquisition of around Euro 300 million.

Freshfields’ advice covers all legal aspects of the transaction, including legal structuring and due diligence, negotiation of the contractual documentation, integration planning, the analysis and obtaining of regulatory approvals, as well as advice on all related corporate and capital market law issues.

The Freshfields team is led by Partner Christoph H. Seibt (pictured left), supported by Associate Maximilian Berenbrok (both Corporate/M&A, Hamburg), and also includes:

  • Partners: Philipp Dohnke (Commercial/IP, Hamburg), Boris Dzida (Labor Law, Hamburg), Thomas Granetzny (Labor/Pensions Law, Dusseldorf), Martin Klusmann (Competition Law, Dusseldorf), Alexander Schwahn (Tax, Hamburg)
  • Counsel: Marius Scherb (Commercial/IP, Hamburg), Juliane Ziebarth (Competition Law, Dusseldorf)
  • Principal Associates: Tobias Franz (Tax, Hamburg), Manuel Jäger (Labor/Pensions Law, Dusseldorf), Michael Bakowitz (Competition Law, Dusseldorf)
  • Associates: Philipp Mroz, Zahar Qasim (all Commercial/IP, Hamburg), Severin Pretzel (Labor Law, Hamburg), Rebecca Hettich (Corporate/M&A, Frankfurt), Esther von Bronk (Real Estate, Hamburg), Alexander Harrer (Competition Law, Dusseldorf)
  • Tax Manager: Marius Gorski (Hamburg)

In-house at Deutz, the transaction is supported by Fabian Dietrich (Head of Legal, pictured right), Rebecca Weber (Head of M&A), Sebastian Nover and Yunis Kaluc (both M&A) as well as Marco Herre (Senior Vice President Central Sales).

Teams led by Hamburg partner Christoph H. Seibt have also advised Deutz in the past on M&A transactions, e.g., on the transaction with Daimler Truck in 2023 or the acquisition of Torqeedo GmbH in 2017, and advise Deutz on corporate and capital markets law issues on an ongoing basis.