W5 Solutions’ CEO, Evelina Hedskog, comments:

“The acquisition of KT‑Shelter is a clear step in our strategy to strengthen W5 Solutions within rapidly deployable infrastructure. KT‑Shelter’s offering complements our products in a way that directly broadens our customer offering without overlap. We see strong opportunities for synergies through cross‑selling, joint innovation, and more efficient production. The Acquisition also strengthens our presence in Finland, a strategically important market where demand is increasing. We look forward to supporting KT‑Shelter’s continued growth and are confident that the combined operations will create significant value for our customers and shareholders.”

About KT-Shelter
KT-Shelter is a Finnish defence technology company specializing in rapidly deployable and modular shelter systems for helicopters, fighter aircraft, drones, and other critical defence equipment. The company’s solutions are designed to provide protection and operational capability in extreme environments where permanent infrastructure is unavailable.

With a patented design that can be assembled directly from the ground without cranes or heavy equipment, KT-Shelter’s facilities can be deployed quickly and in virtually any location. The systems are scalable, adaptable, and engineered to withstand harsh weather conditions, significant temperature fluctuations, and prolonged use, making them well suited for modern, mobile defence operations.

KT-Shelter’s products are used globally by military and government organizations, supporting both operational missions and maintenance, lifecycle support, and tactical basing. By combining mobility, durability, and flexible customization, the company has established itself as a leading provider of rapidly deployable infrastructure to the defence sector.

KT-Shelter has a strong track record of profitable growth with a net sales CAGR of approximately 38 per cent between 2020 and 2025. In 2025, KT-Shelter generated net sales of approximately EUR 13.1 million and an adjusted operating profit (EBIT) of approximately EUR 2.1 million, corresponding to an adjusted operating margin of approximately 16 per cent. Going forward, KT-Shelter expects to maintain strong growth while preserving its margin levels. Through the Acquisition, W5 Solution takes a significant step toward its financial target of achieving revenues of SEK 1,000 million with an EBIT margin of 10 per cent by 2027.

KT-Shelters’ CEO, Tommi Ville Kasanen, comments:

“Joining W5 Solutions marks an important next step for KT-Shelter. Our team has built a strong reputation for mission-critical rapid deployment sheltering solutions, and becoming part of W5 Solution’s growing defence platform will allow us to further strengthen our capabilities and bring our solutions to an even broader customer base while continuing to support our existing partners.”

Strategic rationale
With its product portfolio, KT-Shelter will strengthen W5 Solution’s offering in mobile shelters. The combined portfolio will benefit from increased defence spending on rapidly deployable infrastructure, while new products are introduced that specifically reinforce W5 Solution’s positioning toward the Air Force and its basing concept. KT-Shelter’s offering does not overlap with the Company’s current products; instead, it complements them by broadening the offering.

The Acquisition is expected to generate synergies across the entire group, with opportunities for cross selling across multiple product segments as well as enhanced collaboration in R&D. By combining production capacity and sharing industry expertise, the integration will strengthen operational efficiency and accelerate the development of new solutions.

Furthermore, the Acquisition will strengthen W5 Solutions’ Nordic presence and provide improved access to key decision-makers in Finland, while reinforcing the Company’s position in this strategically important region. Together, these synergies create a strong platform for sustainable growth and long-term value creation.

The Acquisition and financing
The initial purchase price for 100% of the shares in KT-Shelter amounts to EUR 22.0 million and will be paid in cash. In addition, two cash earn-out payments of EUR 2.0 million each may be made, amounting to a maximum of EUR 4.0 million, and are based on the achievement of certain financial targets in 2026 and 2027. The initial purchase price will be financed through long‑term debt financing for which the Company has received a committed credit approval from a Nordic bank. The Company intends, however, to partially replace this financing with equity through a new share issue, with the aim of strengthening and optimizing the Company’s long‑term capital structure.

The acquisition is subject to FDI review and requires prior approval from Finland’s Ministry of Economic Affairs and Employment and is expected to be completed during Q2 2026.

Advisers
DNB Carnegie Investment Bank AB is acting as financial advisor in connection with the Acquisition. DLA Piper is serving as legal advisor to the Company.