The following is text of a news release from Titan Acquisition Holdings:
(PORTLAND, Ore. and SAN DIEGO) — Titan Acquisition Holdings, a bicoastal leader in ship repair and commercial and defense-related fabrication services created through the combination of Vigor Industrial and MHI Holdings, on Wednesday announced a definitive agreement to acquire Huntington Ingalls’ San Diego Shipyard. The shipyard is one of the largest fleet service and repair sites in America, located in the nation’s largest Navy port.
This acquisition creates opportunities to better serve key defense customers, economies of scale, expanded scope, and performance optimization. Current key customers for Titan 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.”
As a part of this transaction, Huntington Ingalls will hold a minority interest in Titan. Titan is controlled by majority owner The Carlyle Group and Stellex Capital Management. Carlyle is a global investment firm whose investment in MHI and Vigor last year was made by the Carlyle U.S. Equity Opportunity Fund II, a $2.4 billion investment vehicle that focuses on middle-market and growth companies in the United States and Canada. Other investors include Frank Foti, former CEO of Vigor, and members of management.
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.
Latham & Watkins LLP served as legal adviser to Titan Acquisition Holdings.