Drone industry: Cologne engine maker Deutz buys propulsion specialist Sobek

Deutz is expanding its involvement in the defence sector and is taking over drone specialist Sobek to do so. The Cologne engine maker aims to profit from the growing market for unmanned systems and is gaining a foothold in the drone industry.

The long-established Cologne company is known worldwide as the oldest manufacturer in its industry – now the defence business is to gain more weight. The acquisition target is the Sobek Group from Hirschberg in Baden-Württemberg (Germany), which specialises in drone propulsion. The transaction is expected to close shortly.

Until now, defence technology was only a side issue in the Deutz portfolio; the acquisition is now meant to significantly strengthen the group's position in this sector. Sobek employs around 70 people at three sites in Baden-Württemberg and Hesse. The company is also active in motorsport and medical technology, but it became known above all for electric drives and control systems for drones. This technology is already used in unmanned systems, for example by the Ukrainian army.

Why Deutz is venturing into the drone industry

Deutz CEO Sebastian Schulte describes Sobek as profitable, with annual revenue in the low to mid double-digit millions. An operating profit of ten to twelve million euros is forecast for 2025; the purchase price amounts to roughly eleven times that figure.

Schulte cites the profound change in defence as the reason: as new technologies and modern warfare take hold, demand for unmanned aerial systems is growing. Drones are becoming increasingly important in defence – above all in the NATO rearmament taking place against the backdrop of tense geopolitical relations with Russia.

The market for military drone propulsion is young but expanding strongly. With the acquisition, Deutz wants to position itself early on as a relevant partner in it.