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Civmec Ltd. (ASX:CVL) has entered into an agreement to acquire Luerssen Australia from Germany-based NVL B.V. & Co. KG (Naval Vessels Lürssen).
In a press release late Tuesday (Oct. 15), it was revealed that Civmec will acquire, through a non-binding head of agreement, all of NVL’s interests in Luerssen Australia, which includes assets, employees, and licences.
Luerssen Australia builds six Arafura-class offshore patrol vessels for the Royal Australian Navy under the SEA1180 contract with the Australian Department of Defence.
“The acquisition of Luerssen Australia is a natural step for Civmec as a sovereign Australian shipbuilder with world-class shipbuilding facilities and an experienced shipbuilding workforce,” Jim Fitzgerald, executive chairman of Civmec, said in a statement. ” Having worked on the project since 2018 we’re confident in our ability to execute the remaining work scope and ensure a smooth transition for all stakeholders.”
The transfer of Luerssen Australia to Civmec is subject to the Commonwealth granting its consent. It is expected the acquisition will be completed by Dec. 31, 2024.
CVL last traded at AU$1.26.
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