An affiliate of private equity firm Lone Star Funds has agreed to buy ship repair services provider Titan Acquisition Holdings from Carlyle (Nasdaq: CG) and Stellex Capital Management for an undisclosed sum.
The parties expect the transaction to conclude in 2023, pending government approvals and other customary closing conditions, and Titan CEO Jim Marcotuli and other members of the leadership team will continue in their roles once the company becomes part of Lone Star Funds, according to a joint release published Friday.
Titan is composed of three ship repair and marine fabrication services companies: Vigor Industrial in Portland, Oregon; MHI Holdings in Norfolk, Virginia; and Continental Maritime of San Diego. Key customers include the U.S. Navy, U.S. Coast Guard, U.S. Army, Military Sealift Command, Boeing (NYSE: BA), Northrop Grumman (NYSE: NOC), Lockheed Martin (NYSE: LMT), ferry services for local and state governments and commercial ship owners.
“Under new ownership, we will focus on sustaining improvements made, identifying additional areas of improvement, and opportunities for future growth,” Marcotuli said.
Kirkland & Ellis LLP and Lazard are Lone Star’s legal counsel and financial adviser, respectively, in the transaction.
Latham & Watkins acts as legal counsel to Titan. In addition to Carlyle and Stellex, BofA Securities and Evercore have advised Titan on the deal’s financial aspect.
