The following is the text of a press release issued by BAE Systems:
(ARLINGTON, Va.) — BAE Systems today announced it has entered into a definitive agreement to acquire Atlantic Marine Holding Company (Atlantic Marine) from JFL-AMH Partners, LLC, a portfolio company of the private equity firm J.F. Lehman & Company for a cash consideration of $352 million.
Atlantic Marine is a privately held vessel maintenance, repair, overhaul and conversion (MROC), marine fabrication, and ship construction services provider with operations at Mayport and Jacksonville, Florida; Moss Point, Mississippi; and Mobile, Alabama. The acquisition does not include Atlantic Marine’s Boston and Philadelphia operations, which will be retained by JFL-AMH Partners, LLC. The acquisition will be funded from BAE Systems’ existing cash resources.
“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. 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,” said Linda Hudson, President and CEO, BAE Systems, Inc.
Atlantic Marine employs approximately 1,000 people and will become part of BAE Systems’ Ship Repair business. The acquisition will complement BAE Systems’ existing ship repair and upgrade capabilities to further serve the U.S. Navy and other maritime customers.
The acquisition is consistent with BAE Systems’ strategy to address anticipated growth in Readiness & Sustainment activity within its home markets. The addition of Atlantic Marine will enhance BAE Systems’ ability to support current and future U.S. Navy home-porting strategies and broaden its customer base.
The proposed acquisition is conditional, among other things, upon receiving certain U.S. regulatory approvals and is expected to close in the third quarter of 2010.
About Atlantic MarineAtlantic Marine is a privately held company that provides MROC, marine fabrication, and ship construction services. Founded in 1964, Atlantic Marine has expanded its operations and capabilities to meet the vessel MROC and marine fabrication needs of a diverse customer base including Navy Surface Combatants, as well as the commercial, offshore, other government ship-types and mega-yacht segments.
About BAE SystemsBAE Systems is a global defense, security and aerospace company with approximately 107,000 employees worldwide. The Company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. In 2009 BAE Systems reported sales of £22.4 billion (US$ 36.2 billion).