NEWPORT NEWS, VA (STL.News) 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