A commercial ship in the dry dock at Austal USA's new West Campus. (Photo provided by Austal USA.)
WASHINGTON — Hanwha Defense USA, a subsidiary of South Korea’s Hanwha Aerospace, has made a preliminary, non-binding offer to purchase Austal USA, the company announced today.
“Any deal will be contingent on due diligence that permits a thorough evaluation of Austal USA’s operations and financials, including newly disclosed information,” Hanwha Defense USA spokesman James Hewitt said in a statement. “Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the United States.”
Austal USA’s parent company, the Australian-based Austal, said in financial guidance released today that “The Austal Board and its advisers have carefully assessed the Proposal and determined that it merits further evaluation, approving Hanwha to undertake due diligence related to Austal USA to improve the certainty of any proposal” — a statement that indicates at least a willingness of Austal to sell its US arm, if the price proves right.
The deal would come with a $1.05 to $1.2 billion price tag on a cash and debt-free basis, per the Austal financial statement.
