HII Expands Shipbuilding Capacity, Announcing Intent to Acquire South Carolina Advanced Metal Fabricator Assets and Workforce
HII (NYSE: HII) has announced a definitive agreement to acquire the assets of W International, a South Carolina-based complex metal fabricator specializing in shipbuilding structures. The Goose Creek facility will operate under HII's Newport News Shipbuilding division, supporting the construction of nuclear-powered submarine and aircraft carrier modules for U.S. Navy programs.
The acquisition includes advanced production facilities with state-of-the-art equipment on a 45-acre site featuring over 480,000 square feet of manufacturing space, with barge and rail access. The facility will be renamed Newport News Shipbuilding - Charleston Operations, with Matt Needy appointed as general manager. The transaction is expected to close in Q4 2024, subject to regulatory approvals and contractual modifications.
HII (NYSE: HII) ha annunciato un accordo definitivo per acquisire gli asset di W International, un fabbricante di metalli complessi con sede in Carolina del Sud, specializzato nelle strutture per la costruzione navale. Lo stabilimento di Goose Creek opererà sotto la divisione Newport News Shipbuilding di HII, supportando la costruzione di moduli per sottomarini e portaerei a propulsione nucleare per i programmi della Marina degli Stati Uniti.
L'acquisizione include impianti di produzione avanzati con attrezzature all'avanguardia su un sito di 45 acri che offre oltre 480.000 piedi quadrati di spazio produttivo, con accesso a chiatte e ferrovie. Lo stabilimento sarà rinominato Newport News Shipbuilding - Charleston Operations, con Matt Needy nominato come direttore generale. Si prevede che la transazione si chiuda nel quarto trimestre del 2024, soggetta ad approvazioni normative e modifiche contrattuali.
HII (NYSE: HII) ha anunciado un acuerdo definitivo para adquirir los activos de W International, un fabricante de metales complejos con sede en Carolina del Sur, especializado en estructuras de construcción naval. La instalación de Goose Creek operará bajo la división Newport News Shipbuilding de HII, apoyando la construcción de módulos para submarinos y portaaviones de propulsión nuclear para los programas de la Marina de EE. UU.
La adquisición incluye instalaciones de producción avanzadas con equipos de última generación en un terreno de 45 acres que cuenta con más de 480,000 pies cuadrados de espacio de fabricación, con acceso a barcazas y ferrocarriles. La instalación será renombrada como Newport News Shipbuilding - Charleston Operations, con Matt Needy nombrado gerente general. Se espera que la transacción se cierre en el cuarto trimestre de 2024, sujeta a aprobaciones regulatorias y modificaciones contractuales.
HII (NYSE: HII)는 남부 카롤라이나에 본사를 두고 있는 복합 금속 가공업체 W International의 자산을 인수하기 위한 확정 계약을 발표했습니다. 구스 크릭 시설은 HII의 뉴포트 뉴스 조선소 부서 산하에서 미 해군 프로그램을 위한 핵 추진 잠수함 및 항공모함 모듈의 건설을 지원할 것입니다.
이번 인수에는 45에이커의 부지에 48만 평방피트 이상의 제조 공간과 바지선 및 철도 접근이 가능한 첨단 장비를 갖춘 생산 시설이 포함됩니다. 이 시설은 뉴포트 뉴스 조선소 - 찰스턴 운영으로 이름이 변경되며, 매트 니디가 총괄 관리자로 임명됩니다. 이 거래는 규제 승인과 계약 수정 사항에 따라 2024년 4분기에 완료될 것으로 예상됩니다.
HII (NYSE: HII) a annoncé un accord définitif pour acquérir les actifs de W International, un fabricant de métaux complexes basé en Caroline du Sud, spécialisé dans les structures de construction navale. L'installation de Goose Creek opérera sous la division Newport News Shipbuilding de HII, soutenant la construction de modules pour sous-marins et porte-avions à propulsion nucléaire pour les programmes de la marine américaine.
L'acquisition comprend des installations de production avancées avec des équipements à la pointe de la technologie sur un site de 45 acres offrant plus de 480 000 pieds carrés d'espace de fabrication, avec accès par barge et rail. L'installation sera renommée Newport News Shipbuilding - Charleston Operations, avec Matt Needy nommé directeur général. La transaction devrait se clôturer au quatrième trimestre 2024, sous réserve des approbations réglementaires et des modifications contractuelles.
HII (NYSE: HII) hat eine endgültige Vereinbarung zur Übernahme der Vermögenswerte von W International angekündigt, einem in South Carolina ansässigen Hersteller komplexer Metallkonstruktionen, der sich auf Schiffbau spezialisiert hat. Die Anlage in Goose Creek wird unter der Abteilung Newport News Shipbuilding von HII betrieben und unterstützt den Bau von Modulen für nuklearbetriebene U-Boote und Flugzeugträger für die Programme der US Navy.
Die Übernahme umfasst moderne Produktionsanlagen mit hochmoderner Ausrüstung auf einem 45 Hektar großen Gelände mit über 480.000 Quadratfuß Produktionsfläche sowie Barge- und Schienenanschluss. Die Einrichtung wird in Newport News Shipbuilding - Charleston Operations umbenannt, und Matt Needy wird zum Geschäftsführer ernannt. Der Abschluss der Transaktion wird für das vierte Quartal 2024 erwartet, vorbehaltlich regulatorischer Genehmigungen und vertraglicher Änderungen.
- Strategic acquisition of advanced manufacturing facilities to increase naval shipbuilding capacity
- Access to skilled workforce in growing shipbuilding region
- 480,000 square feet of manufacturing space with barge and rail access
- Expansion supports AUKUS program and U.S. Navy requirements
- Retention of existing skilled workforce
- None.
Insights
This strategic acquisition significantly enhances HII's production capabilities and positions them strongly for upcoming U.S. Navy and AUKUS contracts. The 480,000 square foot facility with advanced manufacturing capabilities represents a substantial capacity expansion that will help address the growing demand for nuclear-powered vessels.
The timing is particularly opportune given the increased defense spending and the AUKUS agreement's requirements for nuclear submarine production. The facility's strategic location near Charleston, with barge and rail access, provides logistical advantages and access to a skilled workforce in a growing shipbuilding hub.
While financial terms weren't disclosed, this acquisition should positively impact HII's long-term revenue potential and operational efficiency. The ready-to-use infrastructure and trained workforce will enable faster scaling of production without the typical delays associated with new facility construction and staffing.
This acquisition is strategically important for meeting the U.S. Navy's ambitious shipbuilding goals and AUKUS commitments. The addition of W International's advanced metal fabrication capabilities will help address critical production bottlenecks in submarine and aircraft carrier manufacturing.
The facility's specialization in complex metal fabrication and modular construction aligns perfectly with modern naval shipbuilding requirements. The ability to produce pre-fabricated modules off-site can significantly accelerate overall vessel construction timelines at the main Newport News facility.
The retention of the existing workforce is particularly valuable given the specialized skills required in defense shipbuilding and the current tight labor market for skilled trades. This move strengthens HII's competitive position as one of only two shipyards capable of building nuclear-powered submarines in the U.S.
NEWPORT NEWS, Va., Dec. 04, 2024 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that it has entered into a definitive agreement to acquire substantially all of the assets of W International SC, LLC and Vivid Empire SC, LLC (collectively “W International”), a South Carolina-based complex metal fabricator specializing in the manufacture of shipbuilding structures, modules and assemblies.
Upon completion of the transaction, the manufacturing facility in Goose Creek, South Carolina, will operate within HII’s Newport News Shipbuilding (NNS) division. The site will support the construction of nuclear-powered submarine and aircraft carrier modules and structures for U.S. Navy programs. Substantially all current employees will be offered positions with HII to continue to work on site.
“HII is committed to increasing build rates for our Navy customer, and this investment in capacity alongside the Navy will help us do that,” HII President and CEO Chris Kastner said. “It lets us efficiently add trained talent and state-of-the-art manufacturing capabilities to the urgent job of building ships, making it a unique opportunity to accelerate throughput at Newport News Shipbuilding in support of the Navy and AUKUS.”
A photo accompanying this release is available at: https://hii.com/news/hii-expands-shipbuilding-capacity-announcing-intent-to-acquire-south-carolina-advanced-metal-fabricator-assets-and-workforce/.
The acquired assets include advanced production facilities with state-of-the-art equipment, tooling and infrastructure used to fabricate complex metal modules and structures, and are located on a leased 45-acre site with more than 480,000 square feet of manufacturing space. The site has barge and rail access, and is strategically located near Charleston, in a region with a rapidly growing shipbuilding ecosystem and highly skilled trades workforce.
The facility in Goose Creek will be known as Newport News Shipbuilding - Charleston Operations, operating within HII’s Newport News Shipbuilding division.
Current NNS Vice President and Chief Transformation Officer Matt Needy will become general manager of the site. NNS is the nation’s designer, builder and refueler of nuclear-powered aircraft carriers and one of only two shipyards capable of designing and building nuclear‐powered submarines.
The transaction is expected to close in the fourth quarter of 2024, subject to the satisfaction of certain closing conditions, including receipt of regulatory approvals and required contractual modifications from our Navy customer and other third parties.
About HII
HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.
As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, visit:
- HII on the web: https://www.HII.com/
- HII on Facebook: https://www.facebook.com/TeamHII
- HII on X: https://www.twitter.com/WeAreHII
- HII on Instagram: https://www.instagram.com/WeAreHII
Cautionary Statement Regarding Forward-Looking Statements
Statements in this release, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," “guidance,” “projections,” “outlook,” and similar words or phrases or the negative of these words or phrases generally identify these forward-looking statements. Forward-looking statements include, among other things, statements relating to the Company’s future financial condition, results of operations or cash flows, expected benefits of the proposed transaction and the timing of the proposed transaction. Forward-looking statements are based upon assumptions, expectations, plans and projections that we believe to be reasonable when made, but which may change over time. These statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. Specific risks that could cause actual results to differ materially from those expressed or implied in these forward-looking statements include, but are not limited to: those discussed in this release; those identified under “Risk Factors” and other important factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023 and from time to time in our other filings with the SEC; the possibility that the closing conditions of the proposed transaction may not be satisfied on a timely basis, or at all; the possibility that regulatory approvals required for the proposed acquisition may not be obtained on acceptable terms, on the anticipated schedule, or at all; the risk that closing of the proposed acquisition may not occur or may be delayed; the possibility that anticipated benefits of the proposed acquisition may not be realized or may take longer to realize than expected; There may be other risks and uncertainties that we are unable to predict at this time. You are urged to consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the forward-looking statements including the accuracy thereof. Forward-looking statements are based on information, plans and estimates as of the date they are made and there may be other factors that may cause actual results to differ materially from these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by applicable law.
Contacts:
Danny Hernandez
202-264-0588
Danny.J.Hernandez@hii-co.com
Todd Corillo
(757) 688-3220
Todd.T.Corillo@hii-co.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/34785ca8-3bb6-4584-a283-f0ca7e91f053
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