Italy's Fincantieri to Buy U.S. Warship Builder

Italy's Fincantieri to Buy U.S. Warship Builder News Source Info NSI-5 August, 2008: Wisconsin-based U.S. shipbuilder Manitowoc has agreed to sell its Marine segment - which includes Marinette Marine, builder of Lockheed Martin's Littoral Combat Ship - to a Fincantieri-led partnership in an all-cash deal worth $120 million, Fincantieri and Manitowoc announced Monday. Lockheed is a minority partner in the new deal, Manitowoc said. The first LCS, the USS Freedom,is conducting sea trials at a Manitowoc shipyard. (U.S. Navy) Fincantieri is a major Italian shipbuilder. The companies expect to close the deal at the end of this year, subject to U.S. antitrust and security clearances.

Manitowoc's Marine segment includes the company's Marinette, Wisc., shipyard, along with shipyards and repair facilities in Sturgeon Bay, Wisc., and Cleveland. The Marinette shipyard now is conducting sea trials of the first LCS, the USS Freedom. Lockheed Martin, prime contractor for the Marinette LCS, is in competition with a General Dynamics team. Mobile, Ala.-based Austal USA, the U.S. unit of Australian company Austal, is building another LCS for General Dynamics, the Independence. If the sale of Manitowoc's Marine segment goes through, both builders of the LCS will be subsidiaries of foreign-owned companies. "This transaction will allow Manitowoc to focus its financial assets and managerial resources on the growth of its increasingly global crane and foodservice businesses," Manitowoc President and CEO Glen Tellock said in a press release announcing the deal. The company plans to use expected after-tax proceeds from the sale of 60 cents a share for general corporate purposes, including paying down debt expected from Manitowoc's planned acquisition of Enodis, a British food and beverage equipment maker. The LCS is intended to fight in waters near shore and carry out a variety of missions, including fighting off surface ships, hunting submarines and clearing out mines.