BAE acquires US ship repair yards

The company had earlier announced its definitive agreement to acquire Atlantic Marine from JFL-AMH Partners, a portfolio company of the private-equity firm J.F. Lehman & Company, for a cash consideration of about $352 million.

The acquired Atlantic Marine operations at Mayport and Jacksonville, Florida; Moss Point, Mississippi; and Mobile, Alabama, employ around 1,000 people and will become known as BAE Systems Southeast Shipyards. This new business provides vessel maintenance, repair, overhaul, and conversion; marine fabrication; and ship construction services.

The acquisition is consistent with BAE Systems’ strategy to address anticipated growth in readiness and sustainment activity within its home markets. The addition of BAE Systems Southeast Shipyards will enhance the company’s ability to support current and future US Navy home-porting strategies and broaden its customer base.

Last year, BAE boosted its UK warship business by acquiring the VT Group’s 45% share of the BVT Surface Fleet business. In the last few months, it has also set up a support joint venture with Abu Dhabi Shipbuilding and is exploring opportunities in the Indian naval market.