28 October 2020

Austal to acquire Australian ship repair firm

by Jon Grevatt

Australian shipbuilder Austal has signed an agreement to acquire Queensland-based BSE Maritime Solutions for AUD27.5 million (USD19.6 million).

Austal said on 23 October that the acquisition of the company, which is expected to be finalised before the end of November, will help expand its ship repair and related support business across defence and commercial domains.

Austal added that the acquisition is expected to generate earnings of AUD5 million in 2021, rising to AUD11 million by 2025 in line with its increasing number of ship deliveries to the government of Australia.

Austal is to acquire Queensland-based ship repair specialist - BSE Maritime Solutions – to support programmes including the Cape-class patrol boats it is building for the Royal Australian Navy. (Austal)

Funds for the purchase, which will also include BSE Maritime Solutions subsidiaries Brisbane Slipway Holdings and Brisbane Slipways and Engineering, will be sourced from Austal’s cash reserves.

Austal said BSE Maritime Solutions’ customers include the Australian Border Force (ABF), BAE Systems, Thales and Svitzer. The firm employs approximately 60 permanent staff who will be offered employment with Austal, it said.

The proposed acquisition of BSE Maritime Solutions was announced two months after Austal announced a plan to acquire a US-based ship construction and repair firm, Modern American Recycling and Repair Services of Alabama (MARRS). The firm is based near to Austal’s existing facilities in Mobile, Alabama.

The acquisition is positioned to provide Austal – a specialist in aluminium ships - with steel shipbuilding capability in the US and regional ship repair offerings.

Australian shipbuilder Austal has signed an agreement to acquire Queensland-based BSE Maritime Solut...

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