Carlyle and Stellex Capital Management have closed the sale of Titan Acquisition, a provider of ship repair, construction, and fabrication services, to Lone Star Funds.
Titan’s services include ship repair for fishing boats, barges, articulated tug and barge sets, offshore supply vessels, floating drill rigs, aircraft carriers, and cruise ships; fabrication and machining services for heavy, high complexity projects such as structural bridge girders, nuclear containment devices, dam lift gates, and space launch towers; ship construction of fishing boats, tugs, ferries, barges, fireboats, combatant crafts and aluminum workboats.
Source: Titan Acquisition
Customers of Titan include the U.S. Navy, U.S. Coast Guard, Military Sealift Command, U.S. Army, Boeing, Lockheed Martin, Northrop Grumman, cruise lines, fishing fleets, barges, local and state ferry systems.
Titan was formed in 2019 through the combination of Marine Hydraulics International (MHI), a portfolio company of Stellex since 2015, and Vigor Industrial. Titan is the parent company of Portland, Oregon-headquartered Vigor which operates in the Pacific Northwest and Alaska; Norfolk, Virginia-based MHI; and California-based Continental Maritime of San Diego (CMSD).
In February 2020, Titan acquired CMSD (then San Diego Shipyard) from Huntington Ingalls (HI) – one of the largest fleet service and repair contractors for the US Navy. The San Diego Shipyard was acquired by HI in 2013 from United Technologies.
Today, the operations of CMSD include 14 acres of land and 17 acres of water area on San Diego Bay, home to the US Navy’s largest West Coast base and the principal homeport of the US Pacific Fleet with numerous warships, including aircraft carriers, cruisers, destroyers, and submarines.
“We are proud of the many accomplishments of the Titan team over the course of our partnership as we transformed the business into a national leader in ship repair,” said Derek Whang, a managing director of Carlyle. “Titan is well-positioned to maintain its positive trajectory, and we wish the team continued success in its next phase of growth.”
Titan is headquartered in Portland, Oregon and is led by CEO Jim Marcotuli. “We are grateful to Carlyle and Stellex for enabling the strategic investments made over the past several years, which include the acquisition of CMSD, the repurchase of critical assets, and investments in technologies and equipment aimed at improving our service offerings,” said Mr. Marcotuli.
“With the leadership of Jim Marcotuli and the dedicated team at Titan, the company was able to capitalize on strategic acquisitions, impressive execution and changing market dynamics to strengthen its market position while maintaining its values-driven culture,” said David Waxman, a managing director of Stellex. “We congratulate and thank the Titan management team and wish the company all the best in its continued endeavors.”
New York City-headquartered Stellex invests from $50 million to $150 million in United States or Europe-based companies with enterprise values from $50 million to $500 million and revenues greater than $100 million. Sectors of interest include specialty manufacturing, industrial and business services, aerospace and defense, automotive, government services, transportation, logistics, and food. Stellex has additional offices in Detroit, Pittsburgh, and London.
Source: Titan Acquisition
“After almost a decade of investing in the ship repair and defense industries, we continue to see a great deal of opportunity for growth in this space and we plan to utilize our expertise in an effort to make future strategic investments for our portfolio,” added Mr. Waxman.
The Carlyle Group (NASDAQ: CG) invests worldwide in buyouts, growth capital, real estate, and leveraged finance. With $381 billion of assets under management, the firm has more than 2,200 employees in 29 offices across five continents and is based in Washington DC.
Dallas-headquartered Lone Star invests in private equity, credit, real estate, and other financial assets. Since raising its first fund in 1995, Lone Star has organized 22 private equity funds with aggregate capital commitments totaling over $86 billion.
BofA Securities and Evercore were the financial advisors to Titan on this transaction.
Carlyle and Stellex Capital Management have closed the sale of Titan Acquisition, a provider of ship repair, construction, and fabrication services, to Lone Star Funds.
“We are proud of the many accomplishments of the Titan team over the course of our partnership as we transformed the business into a national leader in ship repair,” said Derek Whang, a managing director of Carlyle. “Titan is well-positioned to maintain its positive trajectory, and we wish the team continued success in its next phase of growth.”
“With the leadership of Jim Marcotuli and the dedicated team at Titan, the company was able to capitalize on strategic acquisitions, impressive execution and changing market dynamics to strengthen its market position while maintaining its values-driven culture,” said David Waxman, a managing director of Stellex. “We congratulate and thank the Titan management team and wish the company all the best in its continued endeavors.”
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