BAE acquires US ship repair yards
UK’s BAE Systems has entered into a definitive agreement to acquire Atlantic Marine Holding Company from JFL-AMH Partners, LLC, a portfolio company of the private equity firm J.F. Lehman for a cash consideration of $352 million.
BAE will get Atlantic Marine operations at Mayport, Jacksonville, Moss Point, and Mobile.
Lehman will retain facilities at Boston and Philadelphia.
BAE already operates four US ship repair yards acquired along with United Defense Industries in 2005. Atlantic Marine provides maintenance, repair, overhaul and conversion, fabrication and ship construction services to the military and commercial sectors.
“The priority is to provide fabrication and readiness and sustainment capabilities to the U.S. Navy. There is no suggestion at the moment of us entering the construction business,” said a BAE spokesman here. Linda Hudson, president and chief executive of the company’s U.S. operations, said, “BAE’s strategy for our ship repair business is successfully growing marine sustainment activities in surface ship repair, as well as migrating our capabilities into naval modernization and upgrade.”
The spokesman said the company did not believe that any outstanding issues relating to the $400 million fine by the Justice Department for making false statements about the company's compliance with the Foreign Corrupt Practices Act would affect regulatory approval. BAE said in its statement it expected to close the deal in the third quarter of the year.
For the year 2009, the business being acquired generated sales of $308 million. In a statement, BAE said the group anticipates continued strong demand for naval support capabilities in the United States.
Last year, BAE boosted its UK warship business by acquiring the VT Group’s 45% share of the BVT Surface Fleet business. In the last few months, it has also set up a support joint venture with Abu Dhabi Shipbuilding and is exploring opportunities in the Indian naval market.
