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.
“Neither the acquisition of any publicly traded shares in Austal nor Austral’s core Australasia operations are included in the Proposal, ensuring that Austal’s sovereign shipbuilding mandate and high-performing Australasian business remain fully intact and continue to generate value for shareholders,” per the statement.
In April 2024, Hanwha put forth a takeover bid for the entirety of Austal, but the Australian company batted down the offer, citing concerns that regulatory approvals from the US and Australia would not come through.
However, Austal said at the time the firm remained open to “further engagement if Hanwha is able to provide certainty on whether a transaction would be approved.” Hanwha, who pushed back on regulatory worries, ultimately rescinded the offer in September.
Meanwhile, Hanwha announced in June 2024 that it would purchase the Philly Shipyard, which constructs both commercial and military vessels.
Hanwha’s Philly Shipyard builds the National Security Multi-Mission Vessel (NSMV) currently used as a training ship at state maritime academies, and will build a new missile range instrumentation vessel based on the NSMV design to support the Pentagon’s Golden Dome missile shield system.
Austal USA has shipbuilding and support facilities in Mobile, Ala., and constructs steel and aluminum ships for the Coast Guard and the Navy, including the Independence-variant Littoral Combat Ship.
This is a developing story and may be updated.