Civmec to acquire ship manufacturer Luerssen Australia for A$20 million

[SINGAPORE] Australian construction engineering company Civmec will purchase Luerssen Australia from Naval Vessels Lurssen (NVL) Australia for A$20 million (S$16 million) in cash, the company said on Thursday (Jun 26).

Civmec will take ownership of the whole business, including assets, employees and licences. The deal will be funded by the group’s existing cash reserves.

The aim of the deal is to solidify Australia’s sovereign shipbuilding capability by consolidating design, construction and operational expertise under a single, locally owned entity, in a bid to enhance national resilience and support long-term defence industry growth, said the Australian shipbuilder.

Luerssen Australia, a subsidiary of NVL, is an independent, privately owned group of German shipyards and related companies. The organisation was formerly known as Lurssen Defence.

It specialises in the design, manufacture and servicing of yachts, naval and coastguard vessels. The company supports Australia’s national sovereign shipbuilding strategy and operates from the Australian Marine Complex in Henderson, Western Australia.

Civmec noted that plant and equipment were valued at A$3.6 million. No external valuation was conducted for the acquisition.

The acquisition has a target completion date of Jul 1.

Civmec closed 1.2 per cent or S$0.01 higher at S$0.86 on Wednesday.