
Titan CEO Jim Marcotuli: “Valued customers will continue to see Titan operating companies deliver high quality service in everything we do.” [Image: Vigor]
Three main ship repairers — Vigor, MHI, and Continental Maritime — are to come back beneath new possession. Collectively, the three make up Titan Acquisition Holdings and, in the present day, funds managed by its homeowners, funding agency Carlyle (NASDAQ: CG) and personal fairness agency Stellex Capital Management, reported they’d reached a definitive settlement to promote Titan Acquisition to an affiliate of Lone Star Funds.
The transaction is anticipated to shut in 2023 upon satisfaction of customary closing situations, together with sure governmental approvals. Financial phrases weren’t disclosed. Market hypothesis has been that the deal may very well be value round $2 billion.
“We are proud of the many accomplishments of the Titan team over the course of our partnership. Throughout a particularly unprecedented time, with the pandemic and supply chain constraints, the Titan team has continually executed on its strategy to successfully grow the business, refine its market segments, and expand into new geographic territories,” mentioned Derek Whang, managing director at Carlyle. “Titan is well-positioned to maintain its positive trajectory, and we wish the team continued success in its next phase of growth.”
“From the moment Stellex acquired MHI in 2015, we have partnered with management to capitalize on changing market dynamics to build a stronger company to further serve customers with quality and reliability,” mentioned David Waxman, managing director, Stellex. “The result of our investment focus was the combination of MHI with Vigor and the formation in 2019 of Titan, now a bi-coastal leader in critical ship repair services, and commercial and defense-related fabrication services. It was an incredible experience working closely with the talented Titan team, and we look forward to seeing the company continue to prosper.”
“We are grateful to Carlyle and Stellex for enabling the strategic investments made over the past several years, which include the acquisition of CMSD, the repurchase of critical assets, and investments in technologies and equipment aimed at improving our service offerings,” mentioned Titan CEO Jim Marcotuli. “Titan and its working corporations will stay rooted in current values and centered on priorities of security, compliance, high quality, buyer and aggressive. Under new possession, we’ll deal with sustaining enhancements made, figuring out further areas of enchancment, and alternatives for future development. Valued clients will proceed to see Titan working corporations ship prime quality service in the whole lot we do.
“We see this transaction with Lone Star, when completed, as the next step in our evolution, representing a belief on their part that Titan entities are on a steady and positive path to sustainable growth.”
Jim Marcotuli will proceed in his present function as Titan CEO, and different firm management is anticipated to stay intact.
Dallas-headquartered Lone Star, based by John Grayken, is a number one personal fairness agency advising funds that make investments globally in actual property, fairness, credit score, and different monetary belongings. Since the institution of its first fund in 1995, Lone Star has organized 22 personal fairness funds with combination capital commitments totaling roughly $86 billion.