General Dynamics [GD] yesterday said it has completed its acquisition of the naval ship repair company Earl Industries, expanding its capabilities in the ship repair market.
Terms of the deal, which was announced in late June, were not disclosed. GD said it expects the acquisition to be accretive to earnings in 2013.
Earl Industries supports the United States Navy Fleet in Norfolk, Va., and Mayport, Fla., the two major East Coast Navy ports, and serves as a prime contractor for the service’s nuclear aircraft carrier multi-ship, multi-option (MSMO) contracts that provide maintenance, modernization and repair to all ships of a class in specific homeport areas. Earl Industries, which is now part of GD’s San Diego-based NASSCO shipbuilding and repair operations, also provides maintenance and repair services to frigates and other classes of naval ships.
GD sees the ship repair business as a growth market, Jay Johnson, the company’s chairman and CEO, said on GD’s second quarter earnings call last month. He said the acquisition of Earl Industries will “further enhance our ability to deliver cost-effective repair and maintenance services on both coasts.”
Last year, GD acquired Norfolk-based Navy fleet repair company Metro Marine, which gave the company its first ship repair operation in the Norfolk area. Metro Marine is a prime contractor on MSMO contracts for Navy combat and support ships.