NEWPORT NEWS, Va., Feb. 12, 2020 (GLOBE NEWSWIRE) — Huntington Ingalls Industries (NYSE: HII) announced today that its Technical Solutions business has entered into an agreement to contribute its San Diego Shipyard to Titan Acquisition Holdings, a company comprised of Vigor Industrial and MHI Holdings. Titan is controlled by majority owner The Carlyle Group and Stellex Capital Management. Post-transaction, HII will hold a minority interest in Titan.
The transaction is subject to customary closing conditions and is expected to close in the second quarter. Financial terms were not disclosed.
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. Outside the partnership, HII will continue to provide a broad set of naval sustainment services, including maintenance and modernization, advanced naval logistics, and operational training and support for the U.S. Navy fleet through its Newport News Shipbuilding, Ingalls Shipbuilding and Technical Solutions divisions.
“Titan is a first-class organization with a strong reputation in the ship repair and sustainment market,” said Andy Green, executive vice president and president, 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.”
“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.”
The Carlyle Group is a global investment firm whose investment in MHI and Vigor last year was made by the Carlyle U.S. Equity Opportunity Fund II. Stellex Capital is a private equity manager that invests in and oversees U.S. and European corporate assets.
About Huntington Ingalls Industries
Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII’s Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII’s Technical Solutions division supports national security missions around the globe with unmanned systems, defense and federal solutions, nuclear and environmental services, and fleet sustainment. Headquartered in Newport News, Virginia, HII employs more than 42,000 people operating both domestically and internationally. For more information, visit:
Statements in this release, as well as other statements we may make from time to time, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; adverse economic conditions in the United States and globally; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make.