Avondale Shipyard buyer gets private equity investment

Avondale Shipyard

DECEMBER 10, 2018 — Private equity firm Metalmark Capital has made a strategic investment in Norfolk, VA, based T. Parker Host. Financial terms of the transaction, which coincided’s with Host’s recent acquisition of the Avondale Shipyard site, were not disclosed.

“We welcome Metalmark as a partner in our business and look forward to capitalizing on their financial resources, professional network and industry expertise,” said Adam Anderson, Chief Executive Officer of Host.

Adam Anderson remains the majority shareholder, while Andrew Caplan and Kelsey Host, the fourth generation of the Host family, will remain as partners.

“We are proud of the accomplishments we have achieved as a family and founder-owned business over the past 95 years and look forward to pursuing the promising growth initiatives we have put in place in partnership with Metalmark,” added Anderson. “This investment and acquisition are perfect examples of our core principles in action: Delivering the highest quality total solutions service for customers’ terminal, stevedoring, marine asset and agency needs, while leveraging our unrivaled human capital, impeccable safety standards and highest levels of integrity.”

Host acquired a controlling interest in the Avondale Shipyard from Huntington Ingalls Industries, Inc. via a partnership with Hilco Real Estate. Located along the Mississippi River in New Orleans, LA, Avondale has a footprint of 254 acres and significant warehousing and storage capabilities and has five docks and over one mile of waterfront. Host plans future connectivity for the shipyard to six Class 1 railroads via the New Orleans Public Belt, through an agreement entered into with the Port of New Orleans last month.

“We are pleased to be partnering with Adam and Host’s proven leadership team. We look forward to the exciting developments that Avondale and other business opportunities bring to the Company,” said Howard Hoffen, Chairman and Chief Executive Officer of Metalmark Capital. “We believe Avondale is a compelling strategic fit with Host’s strategy to be a leading provider of terminal and logistics assets for customers who are managing their global supply chain, particularly in bulk and breakbulk commodities.”