02/05/2018 - 12:50

Austal makes $9m US purchase

02/05/2018 - 12:50

Bookmark

Save articles for future reference.

Local shipbuilder Austal has expanded its footprint in the US with the acquisition of technology company ElectraWatch in a cash deal worth $US6.7 million ($9 million).

David Singleton says the purchase will allow the company to expand its service range. Photo: Attila Csaszar

Local shipbuilder Austal has expanded its footprint in the US with the acquisition of technology company ElectraWatch in a cash deal worth $US6.7 million ($9 million).

ElectraWatch has developed a portable system for the non-destructive testing of aluminium used in aluminium ships.

The company’s primary customer to date has been the US Navy, with ElectraWatch's system forming part of a monitoring program for a number of the navy's vessels.

Austal is one of the world’s largest aluminium shipbuilders in both defence and commercial operations.

Austal said ElectraWatch was expected to have revenues of between $US2 million and $US3 million in 2018.

Chief executive David Singleton said the purchase would allow the company to expand its service range.

“The acquisition reflects Austal’s commitment to having the most advanced technology utilised in every element of our shipbuilding enterprise,” he said.

“Combining ElectraWatch’s patented technology with Austal’s advanced ship design, manufacturing and sustainment expertise will reinforce the company’s position as the industry leader in advanced aluminum shipbuilding.

“In particular this acquisition will effectively support and increase our range of services for the shipbuilding and sustainment requirements of our key customer, the US Navy.”

Shares in Austal were flat at $1.76 at 230pm AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options