U.S. Investment Firm Submits Bid to Acquire Austal USA, Competing with Hanwha

[Financial News] Another prospective buyer has emerged for Austal USA, the U.S. business of Australian shipbuilder and defense contractor Austal, which Hanwha Group is seeking to acquire. Austal USA produces vessels for the United States Navy and modules for nuclear-powered submarines.
Austal announced in a filing with the Australian Securities Exchange on the 8th local time that it had "received a nonbinding indication of interest (IOI) from a syndicate led by U.S. investment firm Wildcat Resources." The indication of interest valued Austal USA at $1.25 billion to $1.35 billion.
Austal also said the syndicate plans to operate Austal USA as an independent platform while retaining the Austal brand and its U.S. operations.
Hanwha Defense USA previously announced on the 10th that it had "made a preliminary, nonbinding proposal to acquire Austal’s U.S. business."
Hanwha Defense USA valued Austal USA at $1.05 billion to $1.2 billion, or approximately 1.5 trillion to 1.7 trillion won.
After increasing its stake in Austal to 19.9%, Hanwha plans to further expand its presence in the U.S. shipbuilding and defense markets by acquiring Austal’s U.S. business.
Austal USA specializes in building vessels for the United States Navy and United States Coast Guard at its shipyard in Mobile, Alabama. It has approximately 3,500 employees and also operates facilities including a ship-repair facility in San Diego, California.
Austal USA supplies submarine modules to General Dynamics Electric Boat. The modules produced by Austal USA are used to build the USN’s Virginia-class attack nuclear-powered submarines and Columbia-class strategic nuclear-powered submarines.
Accordingly, if Hanwha acquires Austal USA, it would also secure a production base linked to the USN’s nuclear-submarine supply chain.


[email protected] Lee Seok-woo, International Affairs Specialist Reporter