South Korean shipbuilding major Hanwha Ocean has decided to acquire U.S. shipbuilder Philly Shipyard for $100 million.
As informed, Philly Shipyard has entered into a share purchase agreement with both Hanwha Systems and Hanwha Ocean. The transaction will result in the company selling all of its business against receiving a cash consideration of $100 million.
“After two decades of stewardship, it is with great honor that we transition the ownership from Aker to Hanwha. Recognized as a global leader, Hanwha brings a wealth of sophisticated shipbuilding experience that will enable Philly Shipyard to realize a grander vision for its employees and customers. Reflecting on the past 17 years, I am personally grateful for the opportunity to have worked side by side with the people of Philly Shipyard and eagerly anticipate witnessing the shipyard’s continued growth and success in the future ,” said Kristian Røkke , Chairman of Philly Shipyard.
According to Philly Shipyard, the transaction is subject to the satisfaction of certain customary conditions, including approval by CFIUS (Committee of Foreign Investments in the U.S.) and other regulatory approvals being obtained.
The company’s board of directors will work on defining the firm’s future strategy and structure following the completion of the transaction, including alternatives for use of proceeds. Philly Shipyard is the sole operating subsidiary of PHLY.
Hanwha Group recently launched a new affiliate, Hanwha Engine, after acquiring marine engine company HSD Engine. The firm plans to actively develop and commercialize ships powered by eco-friendly fuels, including ammonia.
Hanwha Engine is currently developing smart ship solutions for efficient ship operations and alternative fuel propulsion systems.
Last year, South Korea’s shipbuilding major Daewoo Shipbuilding & Marine Engineering (DSME) was rebranded as Hanwha Ocean, marking a new era for the organization. This is the second time in 45 years that DSME has undergone a name change, the previous one occurring when it was acquired by Daewoo Group back in 1978.