German defence giant Renk has agreed to acquire UK naval supplier David Brown Defence, the Frankfurt-listed company announced on Friday. The deal, whose value was not disclosed, is reported by Bloomberg to be between $200 million (£150 million) and $250 million (£187 million).
Acquisition Details
Renk will purchase David Brown Defence from its parent firm David Brown Santasalo, which is owned by US private equity firm Stellex Capital Management. The transaction is subject to regulatory approvals and is expected to close in the final quarter of 2026.
Renk stated that the acquisition represents a strategically important addition to its existing portfolio in the naval sector. The company highlighted that it would gain access to high-value naval programmes over the next few years and secure a long-term order base across major naval programmes in the UK, Canada, and Australia, including aftermarket business opportunities.
Synergies and Impact
Renk added that the deal would drive significant synergies in operations and technology. David Brown Defence, founded in Huddersfield in 1902, specialises in manufacturing gearboxes and other machinery for submarines.
The acquisition comes amid growing global defence investment, with NATO calling for member nations to spend 5% of GDP on defence by 2035. Earlier this week, UK Prime Minister Sir Keir Starmer outlined a defence strategy involving £15 billion of investment, including billions for next-generation stealth jets, the largest-ever investment in drone warfare, and confirmation that the UK will purchase F-35A planes capable of carrying nuclear bombs.
