Hanwha Pursues Acquisition of Austal USA, Boosting U.S. Shipbuilding Ambitions

Hanwha Defense USA is making a significant move to expand its footprint in the U.S. shipbuilding industry by proposing to acquire Austal USA, the American subsidiary of Australian defense and shipbuilding company Austal.

The proposal, submitted by Hanwha Defense USA, outlines a 100% acquisition of Austal USA's business and operating assets. The estimated valuation for the deal ranges from $1.05 billion to $1.2 billion, though the final price will be determined after due diligence, considering the company's cash, debt, and working capital.

Austal USA, based in Mobile, Alabama, has a strong track record of constructing medium and small surface vessels for the U.S. Navy and Coast Guard. The company is also strategically expanding into the supply chain for U.S. nuclear-powered submarines, having signed an agreement in 2024 to build modules for the Virginia-class attack submarines and Columbia-class ballistic missile submarines.

This potential acquisition follows Hanwha's earlier purchase of the U.S. shipyard Philly Shipyard in 2024. By integrating Austal USA's naval shipbuilding expertise with Philly Shipyard's focus on merchant vessels, Hanwha aims to create a robust dual-pillar strategy for the U.S. shipbuilding and defense market. A Hanwha Group official stated that the company is exploring various avenues to expand its business base within the United States.

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We are exploring various ways to expand our business base within the United States.