Wildcat Defense has signed an exclusive agreement to acquire Fraser Industries, the Superior, Wis.-based parent company of Fraser Shipyards, Lake Assault Boats, Northern Engineering, and Fraser Terminal.
The companies expect the transaction to close in approximately three months. Financial terms of the acquisition were not disclosed.
Wildcat, part of Miami-based Wildcat Equity Partners, said it plans to invest $350 million in the Superior shipyard to expand its workforce and manufacturing footprint. Fraser CEO Patrick Kelly and other members of the company’s management team are expected to remain with the business following the transaction.
Fraser Industries operates from a 100-acre facility in Superior. Fraser Shipyards, founded in 1888, performs maintenance, repair, and overhaul work for Great Lakes vessels and builds vessels for commercial and military customers. Lake Assault Boats builds aluminum vessels for commercial and defense markets.
“Wildcat’s partnership with Fraser Industries comes at a time when the U.S. is looking to modernize infrastructure at U.S. shipyards, an industry that is critical to national security,” said Eric Nicolaides, who leads Wildcat Equity Partners. “We believe this modernization and expansion should be done by U.S. firms improving and expanding U.S. shipyards.”
Nicolaides said Wildcat intends to use Fraser’s ship repair and new construction experience as a model for investment in other U.S. shipyards.
The agreement follows Wildcat’s previously announced offer to acquire Austal USA and is part of the company’s strategy to invest in U.S. shipbuilding and repair capacity.
Kelly said the investment would support growth in Fraser’s workforce, facilities, and technology while expanding its ability to serve commercial and government customers.
“We’re extremely excited about the opportunity to join Wildcat and build on Fraser’s long history of shipbuilding and ship repair,” Kelly said. “Wildcat’s commitment to investing in our people, facilities, and technology will help us grow, strengthen our workforce, and better serve our commercial and government customers.”
Fraser works with commercial operators as well as federal customers including the Navy and Department of Homeland Security.
Wildcat said Fraser will also maintain its existing partnership with Fincantieri and Donjon Shipbuilding to compete for the Coast Guard’s planned seven-vessel light icebreaker program.
