Civmec (ASX: CVL) is set to significantly enhance its sovereign shipbuilding capabilities through the acquisition of Luerssen Australia, a specialist naval shipbuilder. The $20 million cash deal will see Civmec acquire the business from its parent company, NVL Australia. Civmec is an Australian construction and engineering company that provides services to the infrastructure, resources, and marine sectors. The acquisition of Luerssen Australia will enhance Civmec’s ability to deliver comprehensive naval shipbuilding solutions, encompassing design right through to commissioning.
The transaction will give Civmec full ownership of Luerssen Australia, including $3.6 million in plant and equipment, a skilled workforce, established systems and licences, and a robust supply chain and subcontractor network. It is anticipated that the acquisition will unlock opportunities to improve production efficiencies, accelerate delivery schedules, and secure future shipbuilding contracts. Following completion, the business will offer consolidated services in shipbuilding design, construction, and operational expertise under a single, locally-owned entity.
Civmec expects the acquisition to solidify its role in the SEA1180 program. This program will give it direct control over program delivery, operational decision-making, and future capability development. Luerssen Australia came into being as a prime contractor for the Royal Australian Navy’s Arafura Class offshore patrol vessels (OPVs) under the federal SEA1180 program.
Civmec chair James Fitzgerald said the acquisition supports national objectives to grow Australia’s industrial base and ensures continuity of performance on a strategically important program. He added that the company is well-positioned to deliver on current commitments and pursue future opportunities with Luerssen’s skilled workforce and established systems. The acquisition is expected to enable Civmec to scale its defence operations and deliver five OPVs over the next 3.5 years.
