Deutz Ag last week completed the sale of Deutz Power Systems, its gas engines and diesel engines business for decentralized power generation, to the private equity firm 3i for €360 million (about U.S. $509.2 million).

The sale, which received approvals from the Deutz Ag supervisory board and the relevant antitrust regulator, will result in one-off earnings in 2007 of more than €100 million (about U.S. $141.5 million), net of tax and costs.

“The completion of the sale will enable Deutz to concentrate fully on its compact engines business, and with 3i as its new owner, Deutz Power Systems is in a good starting position to benefit from the growth potential of the world's energy markets,” said Gordon Riske, chairman of the Deutz Ag management board.

Deutz will use the funds raised from the sale to implement a growth and internationalization strategy for its compact engines business.