Hanwha Systems and Hanwha Ocean have sealed a deal for the purchase of Philly Shipyard.

U.S. shipbuilder Philly Shipyard ASA (PHLY) has entered into a share purchase agreement with both Hanwha Systems and Hanwha Ocean, for the purchase of Philly Shipyard, Inc. (PSI), the sole operating subsidiary of PHLY.

The Oslo Stock-listed Philly Shipyard said it will sell all of its business against receiving a cash consideration of $100m, corresponding to a value per PHLY share of NOK 87.24.

The parties expect that the transaction will close during the fourth quarter of 2024. However, the deal is subject to the satisfaction of certain customary conditions, including approval by CFIUS (Committee of Foreign Investments in the US) and other regulatory approvals.

In the event of cost overruns in excess of $100m in current projects undertaken by PSI compared to the company’s current estimates, the parties have agreed principles to reduce the payable Purchase Price at closing.

Except for certain transaction costs, the Purchase Price is not subject to any other adjustments.

Kristian Røkke, chairman of Philly Shipyard ASA, said: “After two decades of stewardship, it is with great honor that we transition the ownership from Aker to Hanwha. Recognized as a global leader, Hanwha brings a wealth of sophisticated shipbuilding experience that will enable Philly Shipyard to realize a grander vision for its employees and customers.”

From a financial perspective, Røkke said the combination of $150m in dividends since 2014 and a sales price of $100m, “offers shareholders an attractive value creation journey.”

“Reflecting on the past 17 years, I am personally grateful for the opportunity to have worked side by side with the people of Philly Shipyard and eagerly anticipate witnessing the shipyard’s continued growth and success in the future,” added the chairman of Philly Shipyard.

To remind, Philly Shipyard ASA is majority-owned by Aker Capital AS, which in turn is wholly-owned by Aker ASA (Aker).