COLOGNE/SCHWERINGEN (dpa-AFX) – The Cologne engine manufacturer DEUTZ is about to purchase the Lower Saxony company Frerk in order to expand its business with emergency power generators and thereby benefit from the trend towards artificial intelligence. The company in Cologne announced that a corresponding purchase agreement had been signed. The purchase price is in the upper double-digit million range, and antitrust approval from the authorities is still pending. The news was well received on the stock market.
After the news in the afternoon, the price of the Deutz share temporarily jumped by almost seven percent. Most recently it was still up by a good three percent at around 8.57 euros. The stock has more than doubled in value so far this year.
The transaction is expected to close in the first quarter of 2026. The Deutz Group, which had sales of 1.8 billion euros in 2024, expects additional profitable revenue growth of around 100 million euros thanks to Frerk.
Frerk Aggregatebau GmbH is based in Schweringen in the Nienburg district; the company produces emergency power generators with around 200 employees. About half of their business comes from diesel and gas systems used in data centers. In the event of a failure, the power supply should be maintained without interruption.
Electricity demand is increasing because of AI
In the digital age, applications of artificial intelligence (AI) are becoming increasingly important. In a sense, the downside is their enormous energy requirements. The power supply in the huge data centers that already exist or are yet to be built is correspondingly important. With the Frerk acquisition, Deutz would like to be a beneficiary of the AI trend, so to speak. In the USA, Deutz already has a subsidiary that produces emergency power generators – these are used in large supermarkets, for example.
With the takeover of Frerk, Deutz is establishing itself as a global provider of emergency power systems and focusing on supplying data centers, explained Deutz boss Sebastian Schulte. “We are thus consistently continuing our strategy of broadening Deutz’s position and making it more independent of the cyclical business with combustion engines – with a clear focus on high-growth markets in which we can leverage our strengths and know-how.”
Frerk managing director Marc Hiller said that a strong partner was needed for further growth. “We are happy to have found this with Deutz,” said the manager. “Frerk will benefit from Deutz’s strong brand, global service network and financial strength.”/wdw/DP/stw/men
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