Titan Acquisition Holdings has agreed to acquire Huntington Ingalls Industries’ (NYSE: HII) San Diego shipyard for an undisclosed sum in a move to expand its ship repair capabilities to better meet the needs of the U.S. Navy, U.S. Army and other defense customers.
The transaction will give HII a minority stake in Titan and is expected to close in the second quarter of 2020, subject to customary closing conditions, the companies said in a joint release published Wednesday.
The San Diego shipyard, formerly Continental Maritime of San Diego, is a division of HII’s technical solutions fleet support group and provides ship fitting, repair, welding, machinery, sheet metal repair and fabrication, pipefitting, boiler repair and preservation and marine electrical repair and installation services to defense and commercial clients.
“We believe this transaction will enable us to leverage complementary capabilities, capacity and facilities to improve efficiencies and better serve the needs of our U.S. Navy customer,” said Andy Green, president of HII Technical Solutions and a 2020 Wash100 award winner.
Titan offers ship repair, modernization and fabrication services to the defense sector. The company was established after The Carlyle Group (Nasdaq: CG) and Stellex Capital Management acquired and merged Vigor Industrial and MHI Holdings in October.
Latham & Watkins LLP served as Titan’s legal adviser in the transaction.