Austal buys out Bender

Six years after it expanded its operations to the US, Western Australian shipbuilder Austal has bought out its minority American partner in the rapidly growing venture for $20.6 million. The acquisition of the 30% stake from Bender Shipbuilding & Repair Co values the entire operation in Mobile, Alabama, at a little under $70 million.

Austal founder and executive chairman, John Rothwell, has previously indicated he expects the American operations to exceed the size of its shipyard at Henderson near Fremantle within a couple of years. The Alabama yard made its first profit in the year to June 30, $11.8 million pre-tax, after a jump in revenue from $15 million to $140 million driven by the first order for what is expected to be a string of new generation littoral combat ships for the US Navy and a two-vessel contract with Hawaiian Superferry.

Austal initially moved to the US to make it eligible to build ships for the US maritime and defence industries, which must be made locally under the Jones act.