Hanwha Defense USA has submitted a conditional offer of up to $1.2 billion to acquire Austal USA, a move that could significantly expand the South Korean company’s presence in US naval shipbuilding. Austal said it received a non-binding proposal indicating an enterprise value of between $1.05 billion and $1.2 billion on a cash-free and debt-free basis. Austal’s board has permitted Hanwha to conduct due diligence after determining that the proposal warrants further consideration. However, no agreement to sell the business has been reached and the offer remains subject to further evaluation. The proposed transaction would cover Austal’s US operations but exclude the company’s publicly traded shares and its Australian and wider Australasian operations. Austal USA designs and builds vessels for the US Navy and Coast Guard and operates facilities in Mobile, Alabama, and San Diego, California. The potential acquisition comes amid broader consolidation in the defense sector. Recent transactions involving Lockheed Martin, Booz Allen Hamilton, and Parker Hannifin show major companies seeking to expand their portfolios through acquisitions of specialized defense and aerospace technology businesses.
