Titan Acquisition Holdings, a company comprised of Vigor Industrial and MHI Holdings, today announced a definitive agreement to acquire Huntington Ingalls Industries’ (HII) San Diego Shipyard.
The transaction is subject to customary closing conditions and is expected to close in the second quarter. Financial terms were not disclosed.
Titan Acquisition Holdings
Titan Acquisition Holdings is involved in ship repair and commercial and defense-related fabrication services and was formed through the combination of Vigor Industrial and MHI Holdings.
Titan is controlled by majority owners 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.
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.
As a part of the current transaction, Huntington Ingalls will hold a minority interest in Titan.
San Diego Shipyard
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. It is one of the largest fleet service and repair sites in America, located in the nation’s largest Navy port.
The 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.
The addition of the San Diego Shipyard will expand Titan’s ship repair and complex fabrication business with critical mass, expanded capabilities, and strategically located facilities in Norfolk; San Diego; Seattle; Portland, Oregon; Vancouver, Washington; and Ketchikan, Alaska.
“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.”
“Titan is a first-class organization with a strong reputation in the ship repair and sustainment market,” said Andy Green, Executive Vice President HII and President, HII Technical Solutions. “We believe this transaction will enable us to leverage complementary capabilities, capacity and facilities to improve efficiencies and better serve the needs of our U.S. Navy customer.”
Tom Rabaut, Chairman of Titan, said, “We are thrilled to announce this agreement to acquire the San Diego Shipyard. Our goal is aimed at creating a stronger company of scale, capable of providing differentiated, coast-to-coast services to the U.S. Navy, U.S. Army and other defense, infrastructure, and maritime customers. Titan is well positioned with our unique, national assets to grow in the highly attractive ship repair and fabrication markets, supported by compelling sector dynamics. The San Diego Shipyard is a great addition to the organization.”