Civmec Acquires Luerssen Australia for AUD 20 Million to Boost Naval Shipbuilding

Strategic Acquisition to Cement Sovereign Shipbuilding

Civmec Limited has taken a decisive step in its evolution as a sovereign Australian shipbuilder by entering into a binding agreement to acquire Luerssen Australia Pty Ltd for AUD 20 million. This acquisition, funded entirely from Civmec’s existing cash reserves, is more than a simple business transaction; it represents a strategic consolidation of design, construction, and operational expertise under one locally owned entity.

Luerssen Australia, headquartered in Henderson, Western Australia, is a specialist naval shipbuilder with a strong track record in delivering vessels for the Royal Australian Navy, particularly the SEA1180 Offshore Patrol Vessel (OPV) program. By bringing Luerssen’s skilled workforce, mature shipbuilding systems, and integrated management processes into its fold, Civmec is poised to enhance its end-to-end shipbuilding capabilities from design through to commissioning.

Implications for the SEA1180 Program and Defence Industry

The acquisition grants Civmec full operational control over the SEA1180 program, enabling it to streamline decision-making and accelerate delivery schedules. This integration is expected to unlock production efficiencies and secure future shipbuilding contracts, reinforcing Civmec’s position as a key player in Australia’s naval defence sector.

Importantly, the transaction aligns with national objectives to grow Australia’s industrial base and sovereign defence capabilities. By consolidating expertise and resources, Civmec strengthens the country’s resilience and self-reliance in naval shipbuilding, a sector critical to national security and economic growth.

Transaction Details and Next Steps

The purchase price of AUD 20 million will be paid in cash from Civmec’s reserves, with no new capital raising required. The deal is subject to customary conditions precedent, including regulatory approvals and the assignment of key contracts and intellectual property licenses. Both parties are targeting a completion date of July 1, 2025.

Luerssen Australia will continue to support Civmec and the SEA1180 program through a structured transition, ensuring continuity and stability. Milestone payments earned prior to completion will remain with Luerssen, while working capital provisions will support ongoing operations post-acquisition.

Leadership Perspectives and Industry Outlook

Civmec Chairman James Fitzgerald described the acquisition as a defining moment, emphasizing the accelerated development of Civmec’s sovereign shipbuilding capabilities. Meanwhile, Luerssen Australia’s CEO Tim Wagner highlighted the natural evolution this transaction represents, expressing confidence in Civmec’s ability to lead the next phase of delivery.

As Civmec integrates Luerssen’s assets and expertise, the combined entity is expected to deliver three Offshore Patrol Vessels over the next five years, reinforcing Australia’s naval fleet and industrial capacity. This move signals a broader trend of consolidation and capability-building within Australia’s defence manufacturing sector.