Acquisition

RNS Number : 1398M

BAE SYSTEMS PLC

18 May 2010

 



BAE Systems - Agreement to acquire Atlantic Marine

May 18, 2010

BAE Systems has entered into a definitive agreement to acquire all of the stock of Atlantic Marine Holding Company (Atlantic Marine) from JFL-AMH Partners, LLC, a portfolio company of the private equity firm J.F. Lehman & Company for a cash consideration of $352 million.  The acquisition will be funded from BAE Systems' existing cash resources.

Atlantic Marine is a privately held vessel maintenance, repair, overhaul, and conversion (MROC), marine fabrication, and ship construction services provider employing approximately 1,000 people in operations at Mayport and Jacksonville, Florida, Moss Point, Mississippi, and Mobile, Alabama.  The proposed acquisition does not include Atlantic Marine's Boston and Philadelphia operations, which will be retained by JFL-AMH Partners, LLC.

For the year ended 31 December 2009, the business being acquired generated EBITA of $38 million (excluding certain corporate and transaction related expenses) on sales of $308 million. The business had gross assets of $257 million as at 31 December 2009.

The acquisition will complement BAE Systems' existing ship repair and upgrade capabilities to further serve the U.S. Navy and other maritime customers.  Atlantic Marine's Jacksonville operations are adjacent to the U.S. Navy home-port of Mayport, Florida.  The Group anticipates continued strong demand for naval support capabilities in the U.S.

The acquisition is consistent with BAE Systems' strategy to address anticipated growth in Readiness & Sustainment activity within its home markets.  The addition of Atlantic Marine will enhance BAE Systems' ability to support current and future U.S. Navy home-porting strategies and broaden its customer base.

Commenting on the acquisition Ian King, Chief Executive, BAE Systems plc said: "BAE Systems' strategy for our ship repair business is successfully growing marine sustainment activities in surface ship repair, as well as migrating our capabilities into naval modernisation and upgrade.  The acquisition of Atlantic Marine's operations, highly skilled workforce, and marine fabrication capabilities will enhance BAE Systems' ability to serve customers in the naval support and upgrade sector."

The acquisition is conditional, among other things, on certain U.S. regulatory approvals and is expected to close in the third quarter of 2010.

Issued by:

BAE Systems plc

London

 

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