- Acquisition of Diesel Motor Nordic Group boosts regional presence in Scandinavia
- Further step toward reaching service revenue target of €600 million by 2025
Cologne, October 4, 2023 – DEUTZ AG has acquired full ownership of the Diesel Motor Nordic Group (DMN) with effect from October 2, 2023. The contracts were signed at the end of July of this year. DEUTZ expects the deal to increase its annual revenue by around €10 million.
Founded in 1956, the Diesel Motor Nordic Group sells and maintains engines for industrial applications. It has a presence in Sweden, Denmark, and Finland and grown dynamically in recent years. DEUTZ’s acquisition of its long-standing partner is the next step in simplifying shared processes and expediting the expansion of the Scandinavian business.
“The acquisition of the Diesel Motor Nordic Group represents another milestone in our transformation from traditional engine manufacturer to provider of on-highway and off-highway solutions. In the future, we aim to be more than a manufacturer of drive systems; we want to focus even more on keeping them moving. Servicing our engines, and increasingly those of our competitors, will be part of this. The acquisition of DMN puts us in a much stronger position to expand our activities in Scandinavia,” says DEUTZ CEO Dr. Sebastian C. Schulte.
Dr. Markus Müller, DEUTZ AG's Chief Technology and Sales Officer, adds: "We always strive to offer our customers the best service options – competently and in a timely manner. With the direct integration of the dedicated team from the Diesel Motor Nordic Group into our company, we will be able to do so even better in Scandinavia in the future."
The global expansion of the service and parts business is one of three key elements of DEUTZ’s Dual+ strategy. Under this strategy, the Company intends to improve the performance of the current business in classic engines and significantly expand the existing service business, using this as the basis to further develop the innovative technology portfolio. The objectives are clear: DEUTZ aims to permanently establish itself among the top three independent drive manufacturers by 2030 and to be a climate-neutral company by no later than 2050. The plan is to increase revenue in the service business to €600 million by 2025.