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Highlights
- Civmec to acquire Luerssen Australia from NVL B.V. & Co. KG.
- The acquisition covers assets, employees, and shipbuilding licences.
- Expected completion by December 2024, subject to Commonwealth approval.
Civmec Ltd. (ASX:CVL), an Australian-based engineering and construction company, has announced plans to acquire Luerssen Australia, a prominent player in the shipbuilding industry. The acquisition is set to transfer all of NVL B.V. & Co. KG’s (Naval Vessels Lürssen) interests in Luerssen Australia, including assets, employees, and shipbuilding licences. This move is seen as a significant step for Civmec, an ASX industrial stock, in strengthening its presence in the naval shipbuilding sector.
Luerssen Australia has been responsible for the construction of six Arafura-class offshore patrol vessels for the Royal Australian Navy. This work is part of the SEA1180 contract under the Australian Department of Defence, making it a vital project for the nation’s defense capabilities. The transition of Luerssen Australia's operations to Civmec is expected to ensure that this crucial project continues smoothly.
According to the announcement made on October 15, Civmec entered into a non-binding head of agreement to acquire Luerssen Australia. This acquisition is expected to be finalized by December 31, 2024, contingent on approval from the Commonwealth. The acquisition is set to include not only the physical assets and employees of Luerssen Australia but also the necessary shipbuilding licences that will enable Civmec to take over the ongoing projects seamlessly.
Jim Fitzgerald, executive chairman of Civmec, stated that the acquisition of Luerssen Australia is a strategic move for the company. Civmec has been involved in the project since 2018, providing them with the experience and knowledge needed to complete the remaining work. Fitzgerald expressed confidence that the acquisition will lead to a smooth transition for all parties involved, ensuring that the work on the Arafura-class offshore patrol vessels continues without disruption.
This acquisition highlights Civmec’s ambition to further establish itself as a key player in Australia’s shipbuilding industry. With state-of-the-art facilities and a skilled workforce, Civmec is well-positioned to take over the responsibilities and successfully carry forward the work initiated by Luerssen Australia.
Civmec’s shares last traded at AU$1.26, reflecting market interest in the company's expanding role within the defense sector.
