Wildcat Equity Partners, an American investment firm, has signed an agreement to acquire Fraser Industries, a shipbuilding and repair group based in Wisconsin. This agreement includes a $350 million investment to expand the company's facilities and workforce.
Deal Details and Development Plans
Wildcat Defense, the maritime and defense arm of this investment firm, has announced that this deal includes Fraser Shipyards, Lake Assault Boats, Northern Engineering, and Fraser Terminal. The financial terms of this acquisition have not been publicly disclosed, but the $350 million represents Wildcat's planned investment in this business, not the purchase price.
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The companies expect to complete this transaction in about three months, and Patrick Kelly, one of the owners and CEO of Fraser, will remain in his position. Wildcat is looking to significantly increase shipbuilding capacity at the Superior Fraser facilities, which serve commercial operators on the Great Lakes.
Plans for Increased Production and Workforce
Investment plans include the construction of a 100,000 square foot manufacturing facility for small and medium-sized vessels, along with a separate manufacturing facility for building Great Lakes cargo ships up to 1,000 feet long. The company aims to triple its production, with this expansion expected to take place over the next five years.
Fraser has also planned to increase its workforce by expanding its manufacturing and repair capabilities. Established in 1888, Fraser Shipyards provides maintenance, repair, and refurbishment services to the commercial fleet on the Great Lakes and also undertakes new commercial work.
This planned acquisition follows Fraser's agreement with HD Hyundai from South Korea earlier this year to modernize its Wisconsin facilities. This partnership, announced in July, includes yard design, production systems, automation, artificial intelligence, and workforce development.
The companies have identified Fraser as a showcase site for modernizing shipbuilding operations across the United States.
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