DEUTZ AG Acquires Blue Star Power Systems, Inc.

Cologne-based DEUTZ AG has announced the acquisition of Blue Star Power Systems, Inc., a genset manufacturer headquartered in North Mankato, Minnesota. The agreement, signed through DEUTZ Corporation, aims to expand DEUTZ's presence in North America and the energy market.

Blue Star Power Systems, specializing in diesel and gaseous generator sets, reported substantial revenues and an EBITDA margin in 2023. DEUTZ expects the acquisition to contribute over $100 million in annual revenue, possibly increasing to over $150 million in the medium term.

DEUTZ is considering various funding options to finance the transaction. Even if financed entirely by borrowing, the company expects its equity ratio to remain above 40 percent. The acquisition aligns with DEUTZ's Dual+ strategy, targeting portfolio expansion and resilience in the future energy market.

Finalizing the deal depends on regulatory approvals, anticipated in the second half of 2024.