UK naval supplier David Brown Defence is set to be bought by German defence giant Renk.
Frankfurt-listed Renk Group said on Friday that it has agreed a takeover for the privately-owned West Yorkshire business.
The firms did not disclose the value of the deal.
However, reports by Bloomberg indicated that move values David Brown Defence at between 200 million dollars (£150 million) and 250 million dollars (£187 million).
Renk will buy the group from parent firm David Brown Santasalo, which is owned by US private equity firm Stellex Capital Management.
The deal is subject to regulatory approvals but is expected to complete in the final quarter of 2026.
“The acquisition represents a strategically important addition to Renk’s existing portfolio in the naval sector,” Renk said in a statement.
“Especially, Renk is gaining access to high-value naval programmes of the next few years and a long-term base of orders across the main naval programmes in the UK, Canada and Australia, including aftermarket business opportunities.”
It added that the deal will help drive “significant” synergies in relation to operations and technology.
David Brown Defence, which was founded in Huddersfield in 1902, specialises in manufacturing gear boxes and other machinery for submarines.
The deal comes amid a backdrop of growing defence investment globally amid calls from Nato for nations to spend 5% of GDP on defence by 2035.
Earlier this week, Sir Keir Starmer laid out a UK defence strategy which will see £15 billion of investment.
The plans included billions more for the next generation of stealth jets, the largest ever investment in drone warfare and confirmation the UK will buy F-35A planes capable of carrying nuclear bombs.
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