Titan Acquires HII's San Diego Shipyard
Titan Acquisition Holdings, the new shipbuilding conglomerate formed by the merger of Oregon-based Vigor Industrial and Virginia-based MHI Holdings, has agreed to acquire Huntington Ingalls’ San Diego Shipyard - one of the largest fleet service and repair contractors for the U.S. Navy.
San Diego Shipyard's business overlaps with Titan's existing client base, which includes the Navy, the U.S. Coast Guard, Military Sealift Command, the U.S. Army and Boeing. The San Diego Shipyard, formerly Continental Maritime, has 14 acres of land near the West Coast's busiest naval base. Vigor has yards in Portland, Vancouver (Washington), Seattle, Port Angeles and Ketchikan. MHI Holdings operates a berthing pier and a fabrication and repair facility at Hampton Roads, Virginia, near to the U.S. Navy's largest East Coast base.
“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.
Financial terms were not disclosed, but the transaction will give Huntington Ingalls a minority interest in Titan, which is controlled by The Carlyle Group and Stellex Capital Management. Other key investors include Frank Foti, the former CEO of Vigor, and members of the company's management.
“Titan is a first-class organization with a strong reputation in the ship repair and sustainment market,” said Andy Green, EVP at HII and president of 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.”
Closing on the acquisition is expected in the second quarter of the year.