 |
Overview of Philly Shipyard, USA (Photo: Hanwha Ocean) |
[Alpha Biz= Lee Joonhyun] Hanwha Group acquired the financially troubled Philly Shipyard in the U.S., which had been in a state of complete capital erosion, for $100 million (approximately 146.9 billion KRW) last year, taking on over 200 billion KRW in losses.
The acquisition is seen as an investment focused on future growth potential, with Hanwha paying a premium of 348.4 billion KRW. Hanwha signed the main contract with Norway’s Aker in June last year and completed the acquisition in December.
Hanwha Systems and Hanwha Ocean jointly acquired the shipyard in a 60:40 ratio, and the shipyard, which was established in 1997, will be utilized as a base for naval vessel construction and maintenance, repair, and overhaul (MRO) operations.
At the time of acquisition, Philly Shipyard was in a state of complete capital erosion, with liabilities (4.98 trillion KRW) exceeding assets (2.96 trillion KRW) by 2.01 trillion KRW.
Notably, other short-term liabilities due for repayment within a year amounted to 3.98 trillion KRW, posing significant short-term financial pressure.
The goodwill generated during the M&A process amounted to 348.4 billion KRW, which carries the risk of turning into a loss if future profitability falls short of expectations.
In the previous year, Philly Shipyard reported sales of 496.7 billion KRW, an operating loss of 164.7 billion KRW, and a net loss of 192.3 billion KRW.
To drive the normalization process, Hanwha Group appointed David Kim, a key strategist and finance executive, as the new head of the company.
Hanwha continues to invest in the U.S. Navy shipbuilding market and recently acquired a 19.9% stake in the Australian shipbuilding and defense company Austal for 337 billion KRW.
A Hanwha Group spokesperson commented, "It is true that we have taken on debt, but debt reduction efforts are underway, and we believe that normalization can be achieved quickly with Hanwha’s systems in place."
Alphabiz 이준현 기자(wtcloud83@alphabiz.co.kr)
