Sales of Deutz Power Systems Finalized
Deutz AG said it has completed the sale of its Deutz Power Systems gas and diesel-engines business for decentralized power generation to the private equity firm 3i. The sale price was €360 million. Following approvals granted by the Deutz AG Supervisory Board and the relevant antitrust regulator, the conclusion of the transaction comes is effective September 30, 2007. Deutz said It will result in one-off earnings in 2007 of more than €100 million, net of tax and costs.
Deutz and 3i originally signed a contract for the sale of Deutz Power Systems in July 2007. Gordon Riske, Chairman of the Management Board of Deutz AG said, "The completion of the sale will enable Deutz to concentrate fully on its compact engines business, and with 3i as its new owner, Deutz Power Systems is in a good starting position to benefit from the growth potential of the world's energy markets."
Deutz said it will use the funds raised from the sale to implement a growth and internationalization strategy for its compact engines business.