Ben Bordelon, CEO and President of Bollinger Shipyards: “As we grow and expand, it’s important that the leadership team grow and reflect the organization – both where it is today and where we’re heading in the future.”
In a Singapore inventory trade announcement, Singapore Technologies Engineering Ltd (ST Engineering) has introduced that its subsidiaries have entered into an settlement to divest your entire issued and excellent fairness pursuits in its U.S. Marine subsidiaries, VT Halter Marine, Inc (Halter Marine) and ST Engineering Halter Marine and Offshore, Inc. (STEHMO) to Bollinger Shipyards Lockport LLC for a money consideration of US$15 million (about SGD 21 million) on a cash-free, debt-free foundation, topic to internet working capital changes, if any, post-closing.
In addition, ST Engineering could obtain earn-out funds post-closing of as much as an mixture quantity of US$10.25 million, topic to the award of sure future shipbuilding contracts to Halter Marine and such contracts assembly the requisite working revenue margins.
According to Bollinger, the acquisition contains 378 acres comprising 2 shipyards in Pascagoula and two dormant yards north of Pascagoula. The newly acquired yards shall be renamed Bollinger Mississippi Shipbuilding and Bollinger Mississippi Repair. The Pascagoula amenities are strategically positioned with direct, deep-water entry to the Gulf of Mexico and homes company workplace area, engineering, fabrication, warehousing and a international commerce zone. The shipyard consists of 225,000 sq. toes of lined manufacturing space in the primary fabrication meeting buildings. The facility is able to producing Panamax-sized vessels as much as 50,000 DWT and options an expanded 225.6 meter (740ft) tilt-beam launch system.
Bollinger says all ongoing packages are to be conveyed with the transaction, together with the Polar Security Cutter (PSC) program for the U.S. Coast Guard and the Auxiliary Personnel Lighter-Small (APL(S)) program for the U.S. Navy.
In its announcement, ST Engineering says it has been enterprise common portfolio evaluation and rationalization to make sure that it focuses on companies which can be strategic and which yield increased returns.
The group says that it performed a radical evaluation of the 2 U.S. marine companies and that they’ve incurred a mixed internet loss earlier than tax of US$256 million within the final 5 years (2017-2021), with an annual internet loss earlier than tax that ranged from about US$40 million to US$60 million.
This evaluation resulted within the engagement of monetary advisor Macquarie Capital (USA) Inc. to conduct an public sale course of involving each strategic traders and personal fairness funds.
The course of, says ST Engineering, “culminated in the selection of Bollinger as the most suitable purchaser, taking into consideration their good reputation and strong track record in undertaking U.S. Navy and U.S. Coast Guard programs. Additionally, as a designer and builder of high-performance vessels, the group believes that Bollinger has the capability and resources to add value to both businesses’ programs, including the Polar Security Cutter. Bollinger, the largest privately-owned and operated shipbuilder in the U.S., is principally engaged in the design, engineering and construction of complex, high endurance U.S. Coast Guard and U.S. Navy vessels, research vessels and offshore oil field support vessels and tugboats, amongst others.”
CHALLENGES AND LOSSES
“We have experienced challenges and losses in the past years operating the two U.S. shipbuilding and ship/rig repair businesses. After a thorough review of strategic alternatives, we made this difficult decision to exit the U.S. Marine business,” stated Vincent Chong, Group President & CEO of ST Engineering. “We believe that this proposed transaction represents a favorable outcome for ST Engineering shareholders, Halter Marine and STEHMO as well as their stakeholders.”
“We thank our U.S. marine employees for their contributions over the years, including accomplishing many shipbuilding successes and delivering niche vessels with high engineering contents to their customers,” stated Ng Sing Chan, President of ST Engineering’s Marine enterprise space.
“The addition of Halter Marine and STEHMO is strategic as it further strengthens our position in the industry and U.S. defence industrial base by allowing Bollinger to expand our footprint, capabilities and suite of innovative solutions that we can provide to our government and commercial customers,” stated Ben Bordelon, CEO and President of Bollinger Shipyards. “I look forward to bringing in the skilled employees of shipbuilders from Mississippi into the Bollinger family. By combining our skilled workforces, we’ll ensure coastal Mississippi remains synonymous with defense shipbuilding and a major part of our industrial base.”
“From Day One, the Bollinger team will leverage our proven and best-in-class management team, operational excellence and existing capability to ongoing commercial and government programs, especially the Polar Security Cutter program,” stated Bordelon.
ST Engineering says the order guide of the 2 U.S. Marine companies was S$1.9 billion (about US$1.35 billion) on the finish of September 2022.
