RENK Group (R3NK) Acquisition presentation summary

Strategic rationale and market positioning

• Acquisition of David Brown Defence (DB Defence) strengthens global leadership in naval power transmission.

• DB Defence brings over 100 years of defence heritage and is fully dedicated to defence markets.

• Expands access to new and evolving naval platforms, including sub-surface and unmanned systems.

• Positions the group as a key supplier to all Five Eyes nations, enhancing international footprint.

• Rare opportunity for market consolidation and technological capability expansion.

Financial impact and growth outlook

• DB Defence expected to generate approximately £100m in revenue for FY-26, with strong contract pipeline through 2030.

• Double-digit revenue growth projected towards 2030, driven primarily by the Navy segment.

• Operational efficiencies and production synergies anticipated across combined operations.

• Margin trajectory for DB Defence aligns with existing business, with further upside potential.

• Acquisition financed through a mix of debt and cash.

Integration and execution plan

• Acquisition is a bolt-on element of the broader M&A strategy, consistent with financial criteria.

• Clear integration plan with structured post-merger integration (PMI) process.

• Closing and start of PMI scheduled for Q4 2026, following signing in July 2026.

• Strong installed industrial base and operational excellence identified as key value drivers.

• Long-term aftermarket business opportunities expected well beyond 2030.