Carlyle and Stellex Complete Sale of Titan to Lone Star Funds: A Major Move in the Ship Repair and Marine Industry

Titan Acquisition Holdings, a prominent leader in ship repair services and marine and heavy complex fabrication, has been successfully sold by Carlyle and Stellex Capital Management to an affiliate of Lone Star Funds. This significant transaction marks a significant milestone in the ship repair and marine industry and highlights the growth potential of Titan under new ownership.

Titan, consisting of Vigor Industrial LLC, MHI Holdings LLC, and Continental Maritime of San Diego (CMSD), has established itself as a reputable player in the industry, serving a diverse range of customers including the U.S. Navy, U.S. Coast Guard, Military Sealift Command, U.S. Army, Boeing, cruise lines, fishing fleets, and ferry services for local and state governments. The company's expertise, combined with its strong customer base, positions it for continued success in the ship repair services market.

Derek Whang, Managing Director of Carlyle, expressed his pride in the accomplishments of the Titan team during their partnership, highlighting the transformation of the company into a national leader in ship repair. He also expressed his confidence in Titan's ability to maintain its positive trajectory and wished the team continued success in their next phase of growth.

David Waxman, Managing Director of Stellex, commended the leadership of Jim Marcotuli and the dedicated team at Titan for successfully capitalizing on strategic acquisitions, execution excellence, and changing market dynamics. He emphasized the company's strong market position and values-driven culture. Waxman also expressed Stellex's commitment to the ship repair and defense industries, recognizing the abundant growth opportunities within this space and their intention to make future strategic investments.

The successful completion of the sale was made possible with the assistance of legal counsel Latham & Watkins LLP, who advised Titan, Carlyle, and Stellex, and financial advisors BofA Securities and Evercore, who provided guidance to Titan throughout the transaction.

Carlyle, a global investment firm deploying private capital across various sectors, aims to create value on behalf of investors, portfolio companies, and communities. With deep industry expertise and $381 billion of assets under management, Carlyle is well-positioned to make strategic investments and contribute to the long-term success of its partners.

Stellex Capital Management, a private equity firm with over $2.6 billion in assets under management, focuses on identifying and deploying capital in opportunities that offer stability, improvement, and growth. The firm's industry knowledge, operational capabilities, and network of senior executives enable portfolio companies to thrive across sectors such as specialty manufacturing, industrial and business services, aerospace & defense, automotive, government services, transportation, logistics, and food.

The sale of Titan to Lone Star Funds signifies the confidence and support of a leading private equity firm in the ship repair and marine industry. Lone Star, founded by John Grayken, advises funds that invest globally in real estate, equity, credit, and other financial assets. With 22 private equity funds and approximately $86 billion in capital commitments, the firm has a proven track record in identifying lucrative investment opportunities and generating substantial returns for its limited partners.

The acquisition of Titan by Lone Star Funds represents a new chapter in the company's growth story. The combined expertise and resources of Lone Star and Titan will undoubtedly lead to exciting opportunities for expansion and innovation in the ship repair services market.

As the ship repair and marine industry continues to evolve, this sale serves as a testament to the resilience and potential for growth within the sector. The market's attractiveness to private equity firms underscores the continued demand for high-quality ship repair services and the opportunity to capitalize on changing market dynamics.

In conclusion, the completion of the sale of Titan Acquisition Holdings to Lone Star Funds marks a significant milestone in the ship repair and marine industry. The expertise and resources brought by Lone Star, combined with Titan's strong market position and customer base, create exciting prospects for growth and innovation in the ship repair services market. This transaction showcases the confidence of prominent investment firms in the industry's potential and sets the stage for future strategic investments and partnerships that will shape the future of ship repair services.