JF Lehman To Buy Drew Marine Biz
The target, a spin out from specialty chemicals maker Ashland, is the equity firm’s third maritime buy.
June 23, 2009
J. F. Lehman & Co., a mid-market investment firm agreed to buy Ashland Inc.’s marine services business unit for about $120 million.
Ashland’s marine services unit, employing about 325, had $140 million in 2008 revenue. The transaction is expected to close by the end of August, the companies said in a statement.
J. F. Lehman, founded in 1992 by Dr. John F. Lehman, a former Secretary of the U.S. Navy, invests heavily in defense-related sectors. In addition to its aerospace acquisitions, the New York-based private equity firm has been an active buyer of maritime companies.
For Ashland, the sale signals a return to the Covington, Kentucky-based company’s core business. The chemical company’s chairman and chief executive said the outlook for the unit "will be much stronger as part of an organization that is targeting growth in the maritime industry.”
The acquisition of Ashland’s maritime unit is similar in nature to J. F. Lehman’s 2006 purchase of Atlantic Marine, a portfolio company that repairs naval and commercial vessels.
Last month. J. F. Lehman sold its 69% stake in Hawaii Superferry, Inc., a ferry service that connects passengers and automobiles among Hawaii’s neighboring islands. The equity firm invested in the Hawaiian company in 2005.
In 1993, the private equity firm acquired Sperry Marine, Inc., a spin-out from Lake Forest, Illinois-based automobile technology company Tenneco. J. F. Lehman later sold the Charlottesville, Virginia-based navigation system maker in 1996.
In addition to its New York headquarters, J.F. Lehman also has offices in New York, Washington and London. As of midday Thursday, Ashland stock traded at $25.41 per share. J.F. Lehman and Ashland did not respond to calls by press time.
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