Cleveland Ships, LLC, a small firm specializing in ship design and support services, said on Sunday that it has bid to acquire the shipbuilding sector of Northrop Grumman [NOC].
The Cleveland, Ohio-based firm has no shipyard currently. It has proposed a design concept to the Navy for a fleet of oiler replacement vessels.
The company proposes to build the oilers at Avondale Shipyard in Louisiana, one of three shipbuilding facilities that Northrop Grumman said earlier this year it planned to divest in a package deal. The other two yards that would be part of any sale are Newport News in Virginia and Ingalls in Mississippi.
So far the only other bidders reportedly interested in acquiring Northrop Grumman’s shipbuilding business are private equity firms. Cleveland Ships said that unlike a “financial acquirer,” it’s a “strategic acquirer” that is interested in owning the business for the long-term.
Ernst and Young is providing financial services to Cleveland Ships during the bidding process.