Austal expands in services with Cairns shipyard purchase

Perth international shipbuilder Austal has built on its growing global marine support business with the purchase of ship repair and support business BSE Maritime Solutions for $27.5 million.

BSE has customers in defence, commercial, tourism, and luxury vessel sectors and services customers including Australian Border Force, BAE Systems, Thales and Svitzer in Cairns and Brisbane.

The acquisition aligns with Austal’s stated strategy of continuing to build the company’s key support business which support more episodic shipbuilding income.

Revenue from Austal’s support segment has grown at an annual rate of 28 per cent over the past four years to reach $360 million in the 2020 financial year.

Austal Chief Executive Officer David Singleton said: “BSE Maritime Solutions is a quality business and its acquisition (adds) further scale to our operations on the east coast of Australia in addition to our existing support services at Henderson, Cairns, and Darwin.

“The acquisition provides Austal with dockyard and ship lift capability in the northeast region of Australia – including the Pacific’s largest mobile boat hoist, capable of moving 1120 tonnes.”

Austal services the Austal designed and constructed Cape-class and Guardian-class patrol boats at a number of facilities across Cairns.

Austal expects that the new business will generate an EBITDA of $5m in FY2021 rising to $11m by FY2025.

Picture: BSE Maritime Solutions Group/Cairns slipway

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