Lone Star to acquire military contractor Titan Acquisition Holdings from Carlyle and Stellex

The deal is expected to close in 2023.

  • Jim Marcotuli will continue in his current role as Titan CEO
  • Titan’s clients include the U.S. Navy, U.S. Coast Guard, Military Sealift Command and Boeing
  • Lazard served as financial advisor to Lone Star while BofA Securities and Evercore served as financial advisors to Titan, Carlyle and Stellex

Carlyle and Stellex Capital Management have agreed to sell Titan Acquisition Holdings, a provider of ship repair services and marine and heavy complex fabrication, to Lone Star Funds. The financial terms were not disclosed.

The deal is expected to close in 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. Customers include the U.S. Navy, U.S. Coast Guard, Military Sealift Command, Boeing, cruise lines, fishing fleets, barges, ferry services for local and state governments, and other key commercial U.S. Government customers.

On the deal, Derek Whang, managing director at Carlyle, said in a statement, “We are proud of the many accomplishments of the Titan team over the course of our partnership. Throughout a particularly unprecedented time, with the pandemic and supply chain constraints, the Titan team has continually executed on its strategy to successfully grow the business, refine its market segments, and expand into new geographic territories. Titan is well-positioned to maintain its positive trajectory, and we wish the team continued success in its next phase of growth.”

Jim Marcotuli will continue in his current role as Titan CEO.

Kirkland & Ellis LLP is serving as legal counsel and Lazard served as financial advisor to Lone Star. Latham & Watkins, LLP is serving as legal counsel to Titan, Carlyle, and Stellex, and BofA Securities and Evercore served as financial advisors.

Founded by John Grayken, Lone Star has organized 22 private equity funds with aggregate capital commitments totaling approximately $86 billion.

Carlyle has $369 billion of assets under management as of September 30, 2022.

Stellex has over $2.6 billion in assets under management. Sectors of particular focus include specialty manufacturing, industrial and business services, aerospace & defense, automotive, government services, transportation, logistics and food.