Hanwha Defense USA is seeking to acquire Austal USA in a proposed transaction valued at up to $1.2 billion, potentially giving Hanwha a larger role in the US defense shipbuilding industry. According to Austal, Hanwha has submitted a non-binding and conditional offer with an indicative enterprise valuation of $1.05 billion–$1.2 billion, excluding cash and debt. Austal’s board has permitted Hanwha to undertake due diligence but emphasized that the proposal is still under evaluation and does not constitute an agreement to sell. Austal USA is a key US naval shipbuilder that develops and produces vessels for the US Navy and Coast Guard, in addition to undertaking submarine-related activities. The company operates its primary shipbuilding facility in Mobile, Alabama, alongside repair facilities in San Diego, California. Importantly, the proposed deal would cover only Austal’s US business and assets, excluding its listed shares and operations in Australia and the wider Australasia region. The potential acquisition comes amid a broader wave of defense-industry M&A activity. Lockheed Martin agreed in July to acquire Ultra Maritime for $3.45 billion, adding advanced undersea warfare technologies such as sonar, sonobuoys, torpedo defense, radar, and autonomous maritime sensing. Booz Allen Hamilton reached a $720 million deal in June for Ultra I&C’s Mission Solutions business, strengthening its defense software, encryption, and edge-computing capabilities. Meanwhile, Parker Hannifin agreed in May to purchase CIRCOR International’s commercial and defense aerospace business for $2.55 billion, expanding its access to critical aircraft motion and flow-control technologies.
