General Dynamics is set to acquire Metro Machine Corp, a US surface-ship repair company that supports the US Navy fleet in Norfolk, Virginia.
The transaction is subject to normal regulatory approvals and is expected to close in November. The value of the cash transaction has not been disclosed, however.
Metro Machine Corp. is a privately held company employing approximately 400 people. It has been conducting US Navy ship repair and conversions since 1972.
The company is a prime contractor in Norfolk for multi-ship, multi-option (MSMO) contracts for combat and support ships for the US Navy, including frigates (FFGs), dock landing ships (LSDs) and amphibious transport ships (LPDs).
MSMO contracts provide for maintenance, modernization and repair to all ships of a class in specific homeport areas.
Metro Machine Corp. will become part of the shipbuilding and repair operations of General Dynamics NASSCO, a business unit of General Dynamics based in San Diego, California. NASSCO, the largest shipbuilding and repair company on the West Coast, is a prime contractor for MSMO contracts for Navy combat and support ships. The company employs 3,400 people.
"With its Norfolk location, Metro Machine Corp. will extend the reach of NASSCO's ship-repair operations to a key East Coast naval port," said Fred Harris, president of General Dynamics NASSCO. "This move will enhance General Dynamics' ability to deliver cost-effective maintenance and repair services to the US Navy, helping the Navy to maximize the life of in-service ships and better serve the ship-repair needs of the entire US fleet."
