Huntington Ingalls Industries (NYSE: HII) announced today that its Technical Solutions business has entered into an agreement to contribute its San Diego Shipyard to Titan Acquisition Holdings, a company comprised of Vigor Industrial and MHI Holdings. Titan is controlled by majority owner the Carlyle Group and Stellex Capital Management. After the transaction, HII will hold a minority interest in Titan.
The San Diego Shipyard acquisition creates opportunities to better serve key defense customers, economies of scale, expanded scope, and performance optimization, says Titan, whose current key customers include the U.S. Navy, U.S. Coast Guard, Military Sealift Command, the U.S. Army, Boeing, and non-defense and commercial customers including state and local ferry systems.
The transaction is subject to customary closing conditions and closing is expected in the second quarter of the year. Financial terms were not disclosed.
“We are excited to add the San Diego Shipyard to our already strongly positioned and growing enterprise. 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,” said Jim Marcotuli, CEO and President of Titan. “We look forward to sharing best practices and leveraging our collective assets to improve service to our valued customers.”
“Titan is a first-class organization with a strong reputation in the ship repair and sustainment market,” said Andy Green, Executive Vice President HII and President, HII Technical Solutions. “We believe this transaction will enable us to leverage complementary capabilities, capacity and facilities to improve efficiencies and better serve the needs of our U.S. Navy customer.”
Tom Rabaut, Chairman of Titan, said, “We are thrilled to announce this agreement to acquire the San Diego Shipyard. Our goal is aimed at creating a stronger company of scale, capable of providing differentiated, coast-to-coast services to the U.S. Navy, U.S. Army and other defense, infrastructure, and maritime customers. Titan is well positioned with our unique, national assets to grow in the highly attractive ship repair and fabrication markets, supported by compelling sector dynamics. The San Diego Shipyard is a great addition to the organization.”
The San Diego Shipyard, formerly Continental Maritime of San Diego, encompasses 14 acres of land and 17 acres of water area on San Diego Bay. San Diego Shipyard is a division of Huntington Ingalls Technical Solutions Fleet Support Group and provides shipfitting, welding, pipefitting, machinery, repair, marine electrical repair and installation, sheet metal repair and fabrication, boiler repair and preservation services to customers.