Fairbanks Morse Defense (FMD), backed by Arcline Investment Management, is set to acquire the Naval Propulsors and Handling business from Rolls-Royce. This strategic move significantly broadens FMD’s portfolio by bringing in Rolls-Royce’s advanced naval propulsion systems, including cutting-edge propellers, waterjets, and marine handling technologies. These systems are integral to naval operations, aiding in the deployment and retrieval of both manned and unmanned vessels, along with other crucial equipment from naval ships.
“When you look at the 150-year history of Fairbanks Morse Defense, you will find a handful of distinctive moments that completely transformed this company. We believe the acquisition of Rolls-Royce naval propulsors and handling businesses will become one of those moments,” said George Whittier, CEO of Fairbanks Morse Defense. “The way that our products and services complement each other is unmatched in the defense industrial base. Combining our capabilities allows Fairbanks Morse Defense to substantially increase what we offer to our U.S. maritime defense customers while also offering our systems and components solutions to Rolls-Royce’s global customer base.”
The acquisition will integrate several key facilities into FMD’s operations:
– Pascagoula, Mississippi Facility: This site is a key player in the production of marine propulsion equipment, manufacturing components such as controllable pitch propellers, large fixed-pitch propellers, and waterjets, primarily for the U.S. Navy. The Pascagoula campus is particularly noteworthy as it houses the only privately-owned foundry in the U.S. that produces propellers for the Navy’s surface fleet and submarines, marking it a critical national asset.
– Walpole, Massachusetts Facility: For more than five decades, this facility has been a trusted provider of ship propulsion systems, including controllable pitch and fixed propellers, as well as waterjets, serving both the U.S. Navy and Coast Guard. The Walpole campus is renowned for its aftermarket services and has played a pivotal role in supporting navies worldwide.
– Peterborough, Ontario Facility: As a Center of Excellence for Naval Handling, this Canadian location specializes in designing and manufacturing advanced handling systems and underwater sensors. One of its most notable contributions is the next-generation Mission Bay Handling System, part of the Global Combat Ship program, which supplies the Royal Navy, Royal Canadian Navy, and Royal Australian Navy.
The acquisition also brings a significant presence of Rolls-Royce’s naval-marine propellers and handling systems, which are widely used across the U.S. Navy’s aircraft carriers, surface combatants, amphibious ships, and submarines, as well as U.S. Coast Guard vessels.
“Rolls-Royce Naval Propulsors & Handling is an industry leader and trusted supplier to navies around the world. We are pleased to collaborate with Fairbanks Morse Defense, who recognizes the value of this business and the outstanding opportunities for its strong future.” said Adam Riddle, President – Defense and Chairman & CEO, Rolls-Royce North America. “We believe this transaction represents the best outcome for the business, its people, and the military customers they serve.”
Fairbanks Morse Defense, which already boasts a diverse array of products including engines, electrical systems, motors, valves, cranes, and more, will see its offerings expanded with this acquisition. The company has also embraced technological advancements, incorporating artificial intelligence, digital defense solutions, telerobotics, additive manufacturing, and smart engineering into its product lineup.
Jefferies is acting as the financial advisor for Fairbanks Morse Defense in this acquisition.