Lockport, Louisiana-based Bollinger Shipyards has agreed to acquire two U.S. marine subsidiaries of ST Engineering North America as part of efforts to expand its ship construction and repair capabilities in support of defense and commercial clients.
The acquisition of VT Halter Marine and ST Engineering Halter Marine Offshore is expected to close before the end of December and includes U.S. government programs, including the U.S. Coast Guard’s Polar Security Cutter and the U.S. Navy’s Auxiliary Personnel Lighter-Small program, and two dormant yards and two shipyards in Pascagoula, Mississippi, Bollinger said Monday.
“The addition of VT Halter Marine and STEHMO in Pascagoula, Mississippi is strategic as it further strengthens our position in the industry and U.S. defense industrial base by allowing Bollinger to expand our footprint, capabilities and suite of innovative solutions that we can provide to our customers,” said Ben Bordelon, president and CEO of Bollinger Shipyards.
ST Engineering said it would receive approximately $15 million in cash from the transaction, subject to net working capital adjustments, and potential earnout payments of up to $10.25 million post-closing, subject to the award of future shipbuilding contracts to VT Halter Marine.
The Singapore-based company plans to continue to invest in its U.S. defense segment and commercial businesses.
Founded in 1946, Bollinger has 14 shipbuilding facilities in Louisiana and builds several ships, including the Coast Guard’s Sentinel-class Fast Response Cutter, the Navy’s Mine Countermeasures Unmanned Surface Vessel and Towing, Salvage and Rescue Ships programs and the Regional Class Research Vessel for the National Science Foundation and Oregon State University.
The shipbuilder also constructs a floating dry dock and a pontoon launcher for the Navy’s Columbia-class ballistic missile submarines under two contracts with General Dynamics’ (NYSE: GD) Electric Boat business. It also takes part in industry studies for two Navy programs – Large Unmanned Surface Vehicle and Light Amphibious Warship.