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Friday, July 19, 2024

Carlyle and Stellex Complete Sale of Titan to an Affiliate of Lone Star Funds

Maritime Activity Reports, Inc.

June 29, 2023

(Photo: Vigor Industrial LLC)

(Photo: Vigor Industrial LLC)

Funds managed by global investment firm Carlyle and private equity firm Stellex Capital Management announced they have completed the sale of Titan Acquisition Holdings, a bi-coastal leader in ship repair services and marine and heavy complex fabrication, to an affiliate of Lone Star Funds. The initial definitive agreement of the sale was announced in February 2023 and the final close took place on June 15, 2023.

Titan is comprised of Vigor Industrial LLC, an infrastructure, defense, and maritime services company based in Portland, Oregon; MHI Holdings LLC, a ship repair, maintenance, and other ship husbandry services company based in Norfolk, Virginia; and Continental Maritime of San Diego (CMSD). Key Titan customers include the U.S. Navy, U.S. Coast Guard, Military Sealift Command, U.S. Army, Boeing, cruise lines, fishing fleets, barges, ferry services for local and state governments, and other key commercial and U.S. Government customers.

Derek Whang, Managing Director of Carlyle, said, “We are proud of the many accomplishments of the Titan team over the course of our partnership as we transformed the business into a national leader in ship repair. Titan is well-positioned to maintain its positive trajectory, and we wish the team continued success in its next phase of growth.”

David Waxman, Managing Director of Stellex, said, “With the leadership of Jim Marcotuli and the dedicated team at Titan, the Company was able to capitalize on strategic acquisitions, impressive execution and changing market dynamics to strengthen its market position while maintaining its values-driven culture. We congratulate and thank the Titan management team and wish the Company all the best in its continued endeavors.” Waxman added, “After almost a decade of investing in the ship repair and defense industries, we continue to see a great deal of opportunity for growth in this space and we plan to utilize our expertise in an effort to make future strategic investments for our portfolio.”

Latham & Watkins LLP served as legal counsel to Titan, Carlyle, and Stellex, and BofA Securities and Evercore served as financial advisors to Titan.