“Austal has received a non-binding indication of interest from a syndicate led by Wildcat Resources LLC” to acquire Austal USA, the Australian shipbuilder said in a filing to the Australian Securities Exchange on Wednesday.
The proposal values Austal USA at between $1.25 billion and $1.35 billion on a cash-free, debt-free basis and is conditional on four weeks of due diligence.
Wildcat has indicated that it “intends to operate the company as a standalone platform,” retaining the Austal brand and its U.S. operations, Austal said.
AJP Takeaways
- Wildcat Resources has offered $1.25 billion to $1.35 billion for Austal USA, topping Hanwha’s earlier bid.
- Hanwha Defense USA has proposed $1.05 billion to $1.2 billion and is seeking to expand its U.S. shipbuilding footprint.
- Austal USA builds vessels for the U.S. Navy and Coast Guard and operates key facilities in Alabama and California.
The new approach puts the Wildcat-led group in direct competition with Hanwha Defense USA, which made a preliminary bid for Austal's U.S. operations last month.
“Hanwha Defense USA has made a preliminary, non-binding offer to acquire Austal's U.S. business,” company spokesperson James Hewitt said in a statement.
Hanwha's proposal values Austal USA at between $1.05 billion and $1.2 billion, meaning Wildcat's offer is higher at both ends of the range. Austal previously said Hanwha's proposal was also on a cash- and debt-free basis and subject to due diligence and other conditions.
“Any deal will be contingent on due diligence that permits a thorough evaluation of Austal USA's operations and financials, including newly disclosed information,” Hewitt said.
“Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the United States,” he added.
Hanwha has been seeking to deepen its presence in the U.S. naval shipbuilding and defense market. It has already built a 19.9 percent economic interest in Austal and acquired Philly Shipyard in 2024.
Austal USA is particularly attractive because of its role in major U.S. naval programs.
The company operates a shipyard in Mobile, Alabama, where it builds vessels for the U.S. Navy and Coast Guard, and employs around 3,500 workers. It also has ship repair and support operations, including facilities in San Diego.
Austal said its board and advisers will consider the Wildcat proposal. No binding transaction has been agreed with either bidder.
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