Hanwha Defense USA has offered up to $1.2 billion to acquire Austal USA, potentially expanding the company's footprint in US naval shipbuilding.
Hanwha Defense USA has offered up to $1.2 billion to acquire Austal USA, potentially expanding the company's footprint in US naval shipbuilding.
Austal said it received a non-binding and conditional offer valuing the firm at an indicative enterprise value of $1.05 billion to $1.2 billion on a cash-free and debt-free basis. The proposal remains subject to due diligence.
Austal's board has allowed Hanwha to conduct due diligence after determining that the proposal merits further evaluation. No agreement to sell has been reached.
Austal USA designs and builds vessels for the US Navy and Coast Guard and also supports submarine-related work. The business operates a shipyard in Mobile, Alabama, as well as repair facilities in San Diego, California.
“Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the US,” company spokesperson James Hewitt said.
The proposed transaction, however, only covers Austal's US business and operations and would not include the company’s publicly traded shares or its core operations in Australia and other parts of Australasia.
Defense Companies Expand Through Acquisitions
Austal USA is not the only defense business attracting buyers as major contractors seek to expand their portfolios.
In July, Lockheed Martin announced a definitive agreement to acquire Ultra Maritime for $3.45 billion. Ultra Maritime develops sonar, sonobuoy, torpedo defense, radar and autonomous maritime sensing systems, giving Lockheed Martin a larger portfolio of undersea warfare capabilities.
Booz Allen Hamilton also agreed in June to acquire Ultra I&C's Mission Solutions business for $720 million. The business develops software, encryption and edge-computing technologies for defense and national security applications.
Earlier, in May, Parker Hannifin agreed to acquire CIRCOR International's commercial and defense aerospace business for $2.55 billion. The deal would add flight-critical motion and flow-control technologies used on commercial and defense aircraft.
