Tuesday, February 4, 2014

Vigor Industrial Buying Alaska Drydock Business

By Mark Edward Nero

The owner of Seward Ship’s Drydock, a full service shipyard and drydock facility in Seward, Alaska, has signed a letter of intent to sell the company’s assets to Vigor Industrial.

The two companies are currently negotiating the terms of the potential sale, and according to Vigor, expect the sale to be finalized “after satisfactory completion of environmental, financial and business due diligence,” as well as Seward Ship’s Drydock, Vigor and the City of Seward reaching a final agreement on certain unspecified details.

Under the terms of the tentative deal, the Seward shipyard would become a subsidiary of the company’s Vigor Alaska subsidiary. The acquisition, according to Vigor Industrial President and CEO Frank Foti, is expected to empower the yard to land more projects and larger-scale projects, and is part of a larger plan to improve the company’s service offerings in Alaska for existing customers in the fishing, oil and gas and marine transportation sectors.

Vigor also said that it expects the acquisition to increase overall capacity to meet expected increases in demand from arctic drilling and the revitalization of the commercial fishing fleets in the area.

“The purchase of this strategically located shipyard will expand our ability to provide the services our customers need, when they need them, where they need them,” Foti said.

In a statement, Seward Ship’s Drydock President James Pruitt said that in order to continue to grow and expand the business, additional capital was required, and that reason – along with a desire to further diversify his financial holdings – made him seek a buyer for the business. “Vigor Industrial has an impressive vision for Seward Ship’s Drydock and I am confident that I have made a decision which will leave the future of the business, and its employees, in safe hands,” Pruitt said.