Portland, Oregon-based Vigor Industrials is being acquired by global investment firm The Carlyle Group and private equity firm Stellex Capital Management.
As part of the agreement, Vigor Industrial LLC, an infrastructure, defense, and maritime services company, will be merged with Norfolk, Virginia-based MHI Holdings LLC, a ship repair, maintenance, and other ship husbandry services company.
A press release said the combined company will create a bicoastal leader in critical ship repair services and commercial and defense-related fabrication services, with key customers comprised of the U.S. Navy, U.S. Coast Guard, Military Sealift Command, Boeing, cruise lines, fishing fleets, barges and ferry services for local and state governments.
The transaction is subject to customary closing conditions and is expected to close by the end of the third quarter 2019. Financial terms, including the purchase price, were not disclosed.
The Carlyle Group will become majority owner of the combined company.
A CEO search is underway for the new company. Tom Rabaut, former President and CEO of United Defense and a current Operating Executive at The Carlyle Group, and Admiral James Stavridis, a retired 4-star U.S. Navy officer, former NATO Alliance Supreme Allied Commander, and a current Operating Executive at The Carlyle Group, will both join the Board of Directors.
Vigor Industrial LLC is currently majority-owned CEO Frank Foti, who will also join the Board of Directors as Vice Chairman and will continue as Vigor’s CEO until a new CEO is retained.
“Through this transaction, Vigor gains responsible, forward-thinking investors who will seek to build on our current platform while maintaining a values-driven culture,” said Foti. “In addition, we are excited to join forces with a company of MHI’s caliber which has a history of delivering strong results and shares our mission to serve the people who protect our country every day. This evolution takes us where we want to go, growing sustainable jobs into the future. I’m excited to be an investor in this adventure and to be a part of what’s to come.”