By Calvin Biesecker
BAE Systems yesterday said it has agreed to acquire four ship repair operations located in the southern United States and operated by Atlantic Marine Holding Co. from J.F. Lehman & Company for $352 million in cash, expanding its footprint and capabilities in the naval ship repair and sustainability market.
The Atlantic Marine operations that BAE would be acquiring are located in Mayport and Jacksonville, Fla., Mobile, Ala., and Moss Point, Miss. The Jacksonville site is adjacent to the Navy’s homeport in Mayport.
The operations include vessel maintenance, repair, overhaul and conversion, marine fabrication, and ship construction services. The deal doesn’t include Atlantic Marine’s operations in Boston and Philadelphia.
Currently, Atlantic Marine’s operations in Florida and the Gulf Coast region service 13 Navy guided missile frigates, four cruisers and four destroyers.
Britain’s BAE, which currently owns naval ship repair facilities in Hawaii, Norfolk, Va., San Diego and San Francisco, Calif., says the pending Atlantic Marine acquisition will complement its existing ship repair and upgrade capabilities to further serve the Navy and other maritime customers. Moreover, the company said the deal is consistent with its strategy to address anticipated growth in readiness and sustainment activity in its home markets and that it anticipates continued strong demand for naval support activities in the United States.
“BAE Systems’ 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,” Linda Hudson, president and CEO of the U.S.-based division of BAE, said in a statement. “The acquisition of Atlantic Marine’s operations, highly skilled workforce, and marine fabrication capabilities will enhance BAE Systems’ ability to serve customers in the naval support and upgrade sector.”
The Atlantic Marine operations being acquired by BAE had sales of $308 million and earnings before interest, taxes and amortization of $38 million in 2009. Atlantic Marine employs about 1,000 people and will become part of BAE’s Ship Repair business.
The deal, subject to U.S. regulatory approvals, is expected to close in the third quarter of 2010.