General Dynamics expects the acquisition to increase its earnings per share in 2013 and to close this summer.
The division will become part of General Dynamics’ San Diego-based NASSCO subsidiary.
NASSCO adds two more East Coast naval ports to its ship maintenance and repair operations, said NASSCO President Fred Harris.
Earl Industries’ ship repair and coatings division employs nearly 575 workers in Norfolk, Va. and Mayport, Fla. areas and has repaired and converted U.S. Navy ships since 1985.
The company is a prime contractor for nuclear aircraft carrier multi-ship, multi-option contracts.
It also provides maintenance and repair services to frigates and other classes of naval ships.