September 24, 2024
Photo of the Fairbanks-Morse Defense.
Fairbanks-Morse Defense (FMD), a Beloit, Wisconsin-based portfolio company of Arcline Investment Management (Arcline), has signed an agreement with Rolls-Royce to acquire the company’s naval propulsion and handling business. According to an FMD press release, the acquisition includes naval propellers and waterjets, as well as marine handling systems that enable the deployment and recovery of manned and unmanned aircraft and other cargo from Navy ships.
“As we look back over Fairbanks-Morse Defense’s 150-year history, we find several standout moments that transformed this company forever. We believe the acquisition of Rolls-Royce’s naval propulsion and handling business will be one of those moments,” said George Whittier, CEO of FMD. “The way our products and services complement each other is unmatched in the defense industrial base. Combining our capabilities will enable Fairbanks-Morse Defense to significantly increase its offerings to U.S. maritime defense customers while also providing our systems and component solutions to Rolls-Royce’s global customer base.”
The acquisition adds to the FMD portfolio:
Rolls-Royce Pascagoula, Mississippi – The Pascagoula Factory is a fully integrated marine propeller and waterjets manufacturing facility, producing controllable pitch propeller blades and hub body castings, large fixed pitch propellers, and waterjets for the U.S. Navy. It is the nation’s only privately owned foundry qualified to cast propellers for the U.S. Navy’s surface and submarine fleets, making it a national asset. Rolls-Royce Walpole, Massachusetts – For more than 50 years, the Rolls-Royce Walpole campus has provided critical marine propulsion systems and aftermarket services, including controllable pitch propellers, fixed propellers, and waterjets, to the U.S. Navy, Coast Guard, and other international navies. Rolls-Royce Peterborough, Ontario, Canada – The Naval Handling Excellence Center in Peterborough, Ontario, supports the design and manufacture of handling systems, launch and recovery systems, and subsea sensors and systems for navies around the world. Its products include the next generation Mission Bay Handling System for the Global Combat Ship program, a frigate program for the Royal Navy, Canadian Navy and Australian Navy.
Rolls-Royce Naval & Marine Corps propellers are installed on all U.S. aircraft carriers currently in service, the statement said. They are also used on U.S. Navy fleet support ships, amphibious ships, surface combatants and submarines, as well as on U.S. Coast Guard vessels. Rolls-Royce steering systems are installed on many of the U.S. Navy’s surface combatants.
“Rolls-Royce Naval Propulsion and Handling is an industry leader and trusted supplier to navies around the world. We are pleased to be working with Fairbanks-Morse Defence, which recognises the value of this business and the exciting opportunities for its bright future,” said Adam Riddle, president, chairman and CEO, defence, Rolls-Royce North America. “We believe this transaction represents the best outcome for our company, its employees and the military customers they serve.”
A statement from Fairbanks Morse Defense highlighted that the company has built a diversified portfolio that includes engines, electrical hardware, motors, valves, cranes, davit systems, fans, fittings and water treatment solutions. The company also said it has evolved its technology offerings with AI, digital defense, remote robotics, additive manufacturing, smart engineering, unmanned mission management, augmented reality and remote collaboration tools.
