Deutz AG has reached an agreement with Rolls Royce Power Systems to take over the sales and service operations for off-highway engines with a maximum power output of up to 480kW (643hp).

The deal relates to 5 to 16-litre diesel engines and systems using Daimler technology which are developed and manufactured by Daimler Truck AG for Rolls Royce Power Systems to its specifications.

Used mainly in agricultural and construction vehicles, the products include the mtu Series 1000-1500 engines and the older Classic OM900 and OM460 series. Deutz will also take over the service operations for engines that are already in service.

The German engine manufacturer says that this acquisition will allow it to optimize and further develop its conventional engines. “With the takeover of the sales and service operations from Rolls-Royce Power Systems, we are taking the next major step towards growth in our business with modern internal combustion engines,” said Deutz CEO Sebastian C. Schulte.

Subject the final agreement, the high double-digit million Euro deal is expected to complete mid-2024, and Deutz expects the new engine business to generate an additional annual revenue of €300 million.

Rolls-Royce’s Power Systems will concentrate largely on higher-powered off-highway engines and systems, primarily from in-house production.

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