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Titan to pick up shipyard from HII
Posted on Thursday, 13 February 2020 13:58
Titan Acquisition Holdings has agreed to buy the San Diego shipyard business of Huntington Ingalls Industries (HII) for an undisclosed sum.
Following the transaction, which is due to close in the second quarter of 2020, HII will own a minority stake in the purchaser.
However, the deal remains subject to the usual customary conditions.
The addition of the San Diego shipyard will help expand Titan’s ship and repair and complex fabrication business, as well its facilities in Portland, Oregon and Vancouver, among other strategic locations.
Headquartered in Virginia, HII is billed as the largest military shipbuilding company in the US.
The group also provides a range of professional services to partners in the government and industrial segments, including unmanned systems, fleet sustainment and nuclear and environmental operations.
Alongside its core activities, HII is also the largest supplier of US navy surface combatants, having built more than 70.0 per cent of the navy’s warship fleet, according to its website.
During the nine months ended 30th September 2019, the business generated revenue of USD 6.49 billion, up 8.5 per cent from USD 5.98 billion in the corresponding period of 2018.
Upon closing, the vendor will continue to deliver a broad set of naval sustainment services, such as operational training and maintenance via its Newport News Shipbuilding, Ingalls Shipbuilding and Technical Solutions divisions.
Jim Marcotuli, president of Titan, said: “The opportunity to add the San Diego Shipyard to our family of companies is a natural step in our evolution, given its strategic location and wealth of talented employees.
“We look forward to sharing best practices and leveraging our collective assets to improve service to our valued customers.”
Zephyr, the M&A database published by Bureau van Dijk, shows there were 142 deals targeting ship building and repair companies announced globally in 2019.
China CSSC Holdings agreed to snap up China-based Jiangnan Shipyard Group for CNY 23.28 billion (USD 3.34 billion) in the largest of these.
© Zephus Ltd