United Defense Completes Acquisition of United States Marine Repair

Tuesday, July 09, 2002
United Defense Industries announced that it has completed its acquisition of United States Marine Repair, Inc. for $316 million to expand its services for the U.S. Navy. United Defense financed the acquisition by amending its existing credit facility to borrow an additional $300 million, and using cash on hand for the balance. "This acquisition expands our vital mission to support the U.S. Navy with superior technology and services. It's also a strategic growth platform because Naval ship modernization is a national defense priority," said United Defense President and Chief Executive Officer Tom Rabaut. "This strengthens our company and gives us a more balanced and diversified defense portfolio." Rabaut reiterated that he expects the acquisition to be accretive to earnings in the second half of 2002 in the range of approximately 5 to 10 percent annually. United Defense expects the acquisition to add approximately $200 million in incremental revenue in 2002. United Defense is retaining the management and employees of United States Marine Repair. United States Marine Repair serves the U.S. Navy, its primary customer, and other defense and commercial customers at ship repair operations in Norfolk, Va.; San Diego, San Francisco and San Pedro, Calif.; Pearl Harbor, Hawaii; and Ingleside, Texas. In the 12-month period ended March 31, 2002, United States Marine Repair reported revenue of $431.7 million, net income of $12.3 million and adjusted EBITDA of $47.8 million. United Defense acquired United States Marine Repair from affiliates of The Carlyle Group. The Carlyle Group holds approximately 49 percent of the fully-diluted shares outstanding of United Defense, which became a public company in December 2001. Rabaut emphasized that United Defense took steps to ensure an objective review of the acquisition. Carlyle executives who serve on United Defense's Board of Directors were excluded from the company process of negotiating and authorizing the transaction. Merrill Lynch also provided a fairness opinion to United Defense's Board of Directors.
Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Odfjell Reports Best Quarter Since 2008

In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.

Great Lakes Shipyard to Build Guatemalan Harbor Tug

U.S. shipbuilding and repair yard Great Lakes Shipyard informs it has signed a contract to build another of its HandySize Class, 3,400 HP twin-screw tugboat for

BAE Systems Welcomes Record Number of Paid Interns

More than 140 university students from across the country are being given a unique insight into working life at BAE Systems, as part of the company’s 12-week summer internship program.

 
 
Maritime Contracts Maritime Security Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1353 sec (7 req/sec)