The owner of Seward Ship’s Drydock has signed a letter of intent to sell the assets of the Seward, Alaska, shipyard company to Vigor Industrial.
The two companies are currently negotiating the terms of the potential sale and expect the sale to be finalized after satisfactory completion of environmental, financial and business due diligence and after Seward Ship’s Drydock, Vigor and the City of Seward reach a final agreement on certain details of the agreement.
Seward Ship’s Drydock operates as a full service shipyard and drydock facility, in Seward, Alaska. Under the terms of the tentative deal, the Seward shipyard would join Vigor as a subsidiary of the company’s Vigor Alaska subsidiary.
James Pruitt, President of Seward Ship’s Drydock said “in order to continue to grow and expand the business, additional capital was required, and this, together with a desire to further diversify my financial holdings, made this an opportune time to seek a buyer for the business”.
Pruitt added that “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.”
“This is an exciting opportunity for Vigor, our customers, our employees and the workforce here in Seward,” said Frank Foti, president and CEO of Vigor Industrial. “Vigor continually strives to improve our service to the maritime industry, and 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 explained that the move was part of Vigor’s larger plan to improve the company’s service offerings in Alaska for existing customers in the fishing, oil and gas and marine transportation sectors as well as increase overall capacity to meet expected increases in demand from arctic drilling and the revitalization of the commercial fishing fleets in the area.
“Beyond strengthening our business, we look forward to providing even greater family-wage job opportunities for Seward’s current workforce and Alaskans overall,” Foti said.
He explained that the purchase will bring the strength of Vigor’s physical, financial and human capital to bear on the yard, which will empower the yard to land more projects and larger-scale projects, translating to more work and sustainable employment for Alaska residents.
In addition, Foti said that Vigor will leverage its existing strong public/private partnerships in Alaska to maximize opportunities for the Seward yard.
Press Release, January 31, 2014