Titan Acquisition Holdings set for ownership changeWritten by Nick Blenkey
Three major ship repairers — Vigor, MHI, and Continental Maritime — are to come under new ownership. Collectively, the three make up Titan Acquisition Holdings and, today, funds managed by its owners, investment firm Carlyle (NASDAQ: CG) and private equity firm Stellex Capital Management, reported they had reached a definitive agreement to sell Titan Acquisition to an affiliate of Lone Star Funds.
The transaction is expected to close in 2023 upon satisfaction of customary closing conditions, including certain governmental approvals. Financial terms were not disclosed. Market speculation has been that the deal could be worth around $2 billion.
“We are proud of the many accomplishments of the Titan team over the course of our partnership. Throughout a particularly unprecedented time, with the pandemic and supply chain constraints, the Titan team has continually executed on its strategy to successfully grow the business, refine its market segments, and expand into new geographic territories,” said Derek Whang, managing director at Carlyle. “Titan is well-positioned to maintain its positive trajectory, and we wish the team continued success in its next phase of growth.”
“From the moment Stellex acquired MHI in 2015, we have partnered with management to capitalize on changing market dynamics to build a stronger company to further serve customers with quality and reliability,” said David Waxman, managing director, Stellex. “The result of our investment focus was the combination of MHI with Vigor and the formation in 2019 of Titan, now a bi-coastal leader in critical ship repair services, and commercial and defense-related fabrication services. It was an incredible experience working closely with the talented Titan team, and we look forward to seeing the company continue to prosper.”
“We are grateful to Carlyle and Stellex for enabling the strategic investments made over the past several years, which include the acquisition of CMSD, the repurchase of critical assets, and investments in technologies and equipment aimed at improving our service offerings,” said Titan CEO Jim Marcotuli. “Titan and its operating companies will remain rooted in existing values and focused on priorities of safety, compliance, quality, customer and competitive. Under new ownership, we will focus on sustaining improvements made, identifying additional areas of improvement, and opportunities for future growth. Valued customers will continue to see Titan operating companies deliver high quality service in everything we do.
“We see this transaction with Lone Star, when completed, as the next step in our evolution, representing a belief on their part that Titan entities are on a steady and positive path to sustainable growth.”
Jim Marcotuli will continue in his current role as Titan CEO, and other company leadership is expected to remain intact.
Dallas-headquartered Lone Star, founded by John Grayken, is a leading private equity firm advising funds that invest globally in real estate, equity, credit, and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 22 private equity funds with aggregate capital commitments totaling approximately $86 billion.