US Investors Top Hanwha’s Bid for Austal USA
The stage is being set for a potential bidding war for the U.S. operations of Austal as an American investment firm stepped out of the shadows with a higher potential valuation. The Australian parent company confirmed in a stock exchange filing on September 9 that it has received “a non-binding indication of interest” from Florida-based Wildcat Infrastructure.
Austal reports the American indication of interest proposes an aggregate enterprise value of US$1.25–1.35 billion on a cash-free, debt-free basis. The price is conditional on being able to conduct four weeks of due diligence.
“Wildcat has indicated it intends to operate the company as a standalone platform, retaining the Austal brand and the company’s US operations,” Austal says in its announcement.
The board of Austal and its advisers are reported to be considering the transaction proposed by Wildcat. This comes as Austal was already in discussions with Hanwha Defense USA and recently told investors that there was “great momentum” building for the Hanwha proposal.
Hanwha’s proposal had an indicative enterprise value of US$1.05 to $1.20 billion on a cash and debt-free basis for the US operations. It indicated the final proposal would be “subject to normalized level of working capital and other customary transaction adjustments.”
Austal has not indicated its response or whether it will permit Wildcat to also start due diligence as Hanwha is proceeding with its review. Hanwha has been anxious to find more opportunities to enter the U.S. naval shipbuilding sector beyond its first purchase of the Philly Shipyard, which so far has not worked for the U.S. Navy.
With a limited number of U.S. shipyards and less established as a major contractor to the U.S. Navy and U.S. Coast Guard, Austal USA is seen as an enticing target, despite financial challenges in its operations. On its website, it says it has delivered 34 ships to the U.S. Navy and has a nearly $10 billion contract backlog that includes Navy and Coast Guard surface ships and module production for submarines and aircraft carriers. Its primary yard is in Mobile, Alabama, with a repair operation that was started in 2021 in San Diego, California.
Austal USA has designed, manufactured, and delivered multiple defense programs such as the Littoral Combat Ship (LCS) and Expeditionary Fast Transport (EPF) for the United States Navy, and has expanded, moving from aluminum to steel construction and programs including the Offshore Patrol Cutters for the United States Coast Guard and more recently nuclear submarine modules for US Virginia and Columbia class submarines, as well as auxiliary vessels for the United States Navy.
Hanwha is well established in naval sectors and looks to build its market position. Wildcat on its website reports that it launched its defense business in 2026 in response to global events and increases in U.S. and allied defense spending. It is said to be targeting prime contracts and defense technologies.
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It is unclear if this could also spur others to emerge as potential bidders. HD Hyundai is also known to be interested in acquiring a U.S. shipbuilder, and media reports have indicated it was in talks with several U.S. companies.
Any acquisition or change in control of Austal USA would require U.S. government approval due to the company’s position as a major U.S. government contractor.
