Private Equity Interest in Northrop Ship Unit

Equity firms might be interested in acquiring the company’s shipbuilding unit, which the military contractor is considering selling or spinning off. And other contractors also may be interested if Northrop does spin off the unit into a separate company.

Northrop Grumman, the largest maker of United States Navy vessels, announced July 13 that it would shut its shipyard in Avondale, La., and move operations to Pascagoula, Miss., as a first step in selling or spinning off the business. The division’s products include aircraft carriers, submarines and transport ships.

A decision on the shipbuilding unit’s future may take several quarters, the Los Angeles-based Northrop said last week. CEO, Mr. Bush told analysts that a spin-off was “the primary focus” of the company’s review. The ship operations include the Newport News shipyard in Virginia.