BAE Systems to buy US shipyards

Atlantic Marine provides maintenance, repair, overhaul and conversion, fabrication and ship construction services to the military and commercial sectors. BAE will get Atlantic Marine operations at Mayport, Jacksonville, Moss Point, and Mobile, while Lehman will retain its facilities at Boston and Philadelphia.

BAE already operates four US ship repair yards acquired with United Defense Industries in 2005. It says the priority for the newly-acquired business will be US Navy repair work, which had been worth $308 million in 2009, with no intention at present of diversifying into new construction.

The company was recently fined by the US Justice Department over certain foreign practices, but did not believe this would affect regulatory approval for the new deal, which it expects to close in the third quarter of 2010.

BAE’s UK warship business expanded in 2009 with the acquisition of VT Group’s 45% share of the BVT Surface Fleet business. The company recently set up a joint venture with Abu Dhabi Shipbuilding and is examining prospects in the Indian naval market.