Virginia-based builder of US Navy aircraft carriers Huntington Ingalls Industries announced that its Technical Solutions business is selling 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. The transaction is subject to customary closing conditions and is expected to close in the second quarter.
The addition of the San Diego Shipyard will expand Titan’s ship repair and complex fabrication business with expanded capabilities and strategically located facilities in Norfolk, San Diego, Seattle, Oregon Vancouver, Washington and Alaska.
Outside the partnership, HII said it would continue to provide a broad set of naval sustainment services, including maintenance and modernization, naval logistics, and operational training and support for the US Navy fleet through its Newport News Shipbuilding, Ingalls Shipbuilding and Technical Solutions divisions.
“We believe this transaction will enable us to leverage complementary capabilities, capacity and facilities to improve efficiencies and better serve the needs of our US Navy customer,” said Andy Green, executive vice president and president, Technical Solutions.
“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.
The Carlyle Group is a global investment firm whose investment in MHI and Vigor last year was made by the Carlyle US Equity Opportunity Fund II.
Earlier this month, HII announced the acquisition of advanced marine robotics provider Hydroid, a US based indirect subsidiary of Norway’s Kongsberg Maritime with whom HII will enter into a strategic partnership to potentially offer its products on the global market.