Carlyle and Stellex Complete Sale of Titan to an Affiliate of Lone Star Funds
June 29 2023 - 7:30AM
Business Wire
Expected growth in ship repair and defense
industries creates opportunities for sellers and investors
Funds managed by global investment firm Carlyle (NASDAQ: CG) and
private equity firm Stellex Capital Management announced they have
completed the sale of Titan Acquisition Holdings, a bi-coastal
leader in ship repair services and marine and heavy complex
fabrication, to an affiliate of Lone Star Funds. The initial
definitive agreement of the sale was announced in February 2023 and
the final close took place on June 15, 2023.
Titan is comprised of Vigor Industrial LLC, an infrastructure,
defense, and maritime services company based in Portland, Oregon;
MHI Holdings LLC, a ship repair, maintenance, and other ship
husbandry services company based in Norfolk, Virginia; and
Continental Maritime of San Diego (CMSD). Key Titan customers
include the U.S. Navy, U.S. Coast Guard, Military Sealift Command,
U.S. Army, Boeing, cruise lines, fishing fleets, barges, ferry
services for local and state governments, and other key commercial
and U.S. Government customers.
Derek Whang, Managing Director of Carlyle, said: “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. Titan is well-positioned to maintain its
positive trajectory, and we wish the team continued success in its
next phase of growth.”
David Waxman, Managing Director of Stellex, said, “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. We
congratulate and thank the Titan management team and wish the
Company all the best in its continued endeavors.” Waxman added,
“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.”
Latham & Watkins LLP served as legal counsel to Titan,
Carlyle, and Stellex, and BofA Securities and Evercore served as
financial advisors to Titan.
About Carlyle Carlyle (NASDAQ: CG) is a global investment
firm with deep industry expertise that deploys private capital
across three business segments: Global Private Equity, Global
Credit and Global Investment Solutions. With $381 billion of assets
under management as of March 31, 2023, Carlyle’s purpose is to
invest wisely and create value on behalf of its investors,
portfolio companies and the communities in which we live and
invest. Carlyle employs more than 2,200 people in 29 offices across
five continents. Further information is available at
www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
About Stellex Capital Management With offices in New
York, Detroit, Pittsburgh, and London, Stellex is a private equity
firm with over $2.6 billion in AUM. Stellex seeks to identify and
deploy capital in opportunities that have the potential to provide
stability, improvement, and growth. Portfolio companies benefit
from Stellex’s industry knowledge, operating capabilities, network
of senior executives, strategic insight, and access to capital.
Sectors of particular focus include specialty manufacturing,
industrial and business services, aerospace & defense,
automotive, government services, transportation, logistics and
food. Additional information may be found at
www.stellexcapital.com.
About Titan Acquisition Holdings A family of bicoastal
leaders in ship repair, ship modernization, marine and complex
fabrication services, Titan Acquisition Holdings was formed by
global investment firm The Carlyle Group and private equity firm
Stellex Capital Management following their 2019 acquisition of MHI
Holdings and Vigor. Titan is the parent company of Vigor, operating
in the Pacific Northwest and Alaska; MHI, based in Norfolk,
Virginia; and Continental Maritime of San Diego (CMSD) in
California. Notable Titan family customers include Boeing, Lockheed
Martin, Northrop Grumman, U.S. Navy, Military Sealift Command,
Maritime Administration, U.S. Army, local and state ferry systems,
and commercial ship owners.
About Lone Star Lone Star, founded by John Grayken, is a
leading private equity firm advising funds that invest globally in
real estate, equity, credit, and other financial assets. Since the
establishment of its first fund in 1995, Lone Star has organized 22
private equity funds with aggregate capital commitments totaling
approximately $86 billion. The firm organizes its funds in three
series: the Commercial Real Estate Fund series; the Opportunity
Fund series; and the U.S. Residential Mortgage Fund series. Lone
Star invests on behalf of its limited partners, which include
institutional investors such as pension funds and sovereign wealth
funds, as well as foundations and endowments that support medical
research, higher education, and other philanthropic causes. For
more information regarding Lone Star Funds, go to
www.lonestarfunds.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230629891501/en/
Media Inquiries: Stellex – Rosalia Scampoli | 212.537.5177 x7 |
rscampoli@marketcompr.com Carlyle – Brittany Berliner |
212.813.4839 | brittany.berliner@carlyle.com Titan – Jill Mackie |
206.498.5298 | mediarelations@vigor.net Lone Star – Christina
Pretto | 212.849.9662 | mediarelations@lonestarfunds.com
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