JANUARY 31, 2014—Vigor Industrial, already a regional shipbuilding and repair powerhouse, is in negotiations to expand its business in the Pacific Northwest, with the acquisition of Seward Ship's Drydock, Seward, Alaska. Vigor reports that the owner of Seward Ship’s Drydock has signed a letter of intent to sell the assets of the Seward, Alaska, shipyard company to Vigor Industrial. The two companies are currently negotiating the terms of the potential sale and expect the sale to be finalized after satisfactory completion of environmental, financial and business due diligence and after Seward Ship’s Drydock, Vigor and the City of Seward reach a final agreement on certain details of the agreement.
Seward Ship’s Drydock operates as a full service shipyard and drydock facility, in Seward, Alaska. Under the terms of the tentative deal, the Seward shipyard would join Vigor as a subsidiary of the company’s Vigor Alaska subsidiary.
Back in 2012, Vigor acquired Alaska Ship & Drydock, Ketchikan, AK. Since renamed Vigor Alaska, the shipyard has two dry docks, one 10,000 long ton capacity and the other another 2,500 long ton capacity, and a 70,000 square foot indoor assembly hall on its 16.5 acre facility.
Seward Ship’s Drydock President James Pruitt says, “In order to continue to grow and expand the business, additional capital was required, and this, together with a desire to further diversify my financial holdings, made this an opportune time to seek a buyer for the business. Vigor Industrial has an impressive vision for Seward Ship’s Drydock and I am confident that I have made a decision which will leave the future of the business, and its employees, in safe hands.”
The acquisition seems to fit well with Vigor's growth philosophy. Vigor Industrial President and CEO Frank Foti, says, “Vigor continually strives to improve our service to the maritime industry, and the purchase of this strategically located shipyard will expand our ability to provide the services our customers need, when they need them, where they need them.”
Foti explained that the move was part of Vigor’s larger plan to improve the company’s service offerings in Alaska for existing customers in the fishing, oil and gas and marine transportation sectors as well as increase overall capacity to meet expected increases in demand from arctic drilling and the revitalization of the commercial fishing fleets in the area.
“Beyond strengthening our business, we look forward to providing even greater family-wage job opportunities for Seward’s current workforce and Alaskans overall,” Foti said. He explained that the purchase will bring the strength of Vigor’s physical, financial and human capital to bear on the yard, which will empower the yard to land more projects and larger-scale projects, translating to more work and sustainable employment for Alaska residents. In addition, Foti said, Vigor will leverage its existing strong public/private partnerships in Alaska to maximize opportunities for the Seward yard.
Seward Ship's Drydock has a 5,000-ton Syncrolift capable of lifting boats up to 350 feet in length with an 80-foot beam. The shipyard also has a 250-ton Travelift and three side rail berths.