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J.F. Lehman Sells Ship Repair Unit for $325 Million

Published Jan 14, 2011 4:20 PM by The Maritime Executive

J.F. Lehman & Company completed the sale of Atlantic Marine Holding Company to a subsidiary of BAE Systems, Inc. for an estimated $325 million.

Atlantic Marine is a provider of vessel maintenance, repair, overhaul and conversion (“MROC”) as well as marine fabrication services to government and commercial maritime customers. The company has operations in Mobile, AL, Jacksonville and Mayport, FL (pictured) and Moss Point, MS. JFL has retained the company’s MROC operations in Boston, MA and Philadelphia, PA and a parcel of real estate in Mobile.

The sale price is subject to customary post-closing adjustments. An investment affiliate of JFL acquired the business in August 2006. Tig H. Krekel, Lead Director of Atlantic Marine and Vice Chairman of JFL, said, "We are pleased to sell Atlantic Marine to BAE Systems as we believe it will be a very complementary fit with its ship repair business and will benefit from BAE Systems’ global resources and excellent reputation."

"BAE Systems Southeast Shipyards will complement our existing ship repair, maintenance, and modernization capabilities to further serve the U.S. Navy and other maritime customers," said Bill Clifford, president of BAE Systems Ship Repair. "We are proud to welcome the highly skilled men and women of Atlantic Marine to BAE Systems. Together, we'll continue to provide cost-effective solutions to meet our customers' evolving requirements."

BAE Systems PLC is currently Britain's biggest defense contractor.The acquisition is consistent with BAE Systems' strategy to address anticipated growth in readiness and sustainment activity within its home markets. The addition of BAE Systems Southeast Shipyards will enhance the company's ability to support current and future U.S. Navy home-porting strategies and broaden its customer base.

J.P. Morgan, led by Managing Director Chris Ventresca, provided M&A advisory services for the seller in connection with the transaction. Mike Dyer and Peter Schnur led the Blank Rome legal team advising the seller.