Norfolk yard to buy neighboring shipyard
Looking for more space, Lyon Shipyard Inc. plans to buy out neighboring Norfolk Shiprepair & Drydock Co.
The two repair yards, side by side on the Elizabeth River's Eastern Branch, have signed a sales contract but have not yet closed on the deal, said Tom Ackiss, Lyon's vice president, on Tuesday.
The purchase, he said, is pending completion of a "due diligence" review of environmental, financial, legal and other aspects of the deal.
"It appears we're going to be able to reach a mutually agreeable conclusion," Ackiss said.
The deal involves Lyon buying out Norfolk Shiprepair's assets, he said, which include two marine railway docks, a pier, machinery and a cluster of buildings on the approximately 11-acre property. The two yards front the river near the foot of the Campostella Bridge on the northwest side.
"It's a good fit for us, and a logical thing," Ackiss said. "It gives us a little more elbow room to work and more room dockside."
Clay McNutt, a principal with Norfolk Shiprepair, was traveling Tuesday and could not be reached for comment. His father, Edmund "Buddy" McNutt, the company's founder, died in 2004.
Lyon, with about 115 employees, works mainly on commercial tugs and barges but also handles smaller Navy vessels, such as berthing barges.
Norfolk Shiprepair, which employs around 60 to 70, does similar work.
Employees at both yards have been informed of the pending sale, Ackiss said. During the past two to three weeks, Lyon has hired a "handful" of Norfolk Shiprepair's workers, and would "take as many as we can" once the deal is closed, he said.
Those workers include welders, machinists, painters and electricians.
"It's just hard getting good workers in these trades anymore," he said.
Ackiss declined to discuss the price of the deal. City real estate records assess the property at $3.74 million.
Norfolk Shiprepair purchased the property in 2000 for $3.09 million, according to city records.
The work load at Lyon has been "fairly stable," Ackiss said. The yard has two floating dry docks capable of lifting barges and oceangoing tugs.
The two yards have informally discussed a sale for around two years and began serious talks last fall, he said.
The two repair yards, side by side on the Elizabeth River's Eastern Branch, have signed a sales contract but have not yet closed on the deal, said Tom Ackiss, Lyon's vice president, on Tuesday.
The purchase, he said, is pending completion of a "due diligence" review of environmental, financial, legal and other aspects of the deal.
"It appears we're going to be able to reach a mutually agreeable conclusion," Ackiss said.
The deal involves Lyon buying out Norfolk Shiprepair's assets, he said, which include two marine railway docks, a pier, machinery and a cluster of buildings on the approximately 11-acre property. The two yards front the river near the foot of the Campostella Bridge on the northwest side.
"It's a good fit for us, and a logical thing," Ackiss said. "It gives us a little more elbow room to work and more room dockside."
Clay McNutt, a principal with Norfolk Shiprepair, was traveling Tuesday and could not be reached for comment. His father, Edmund "Buddy" McNutt, the company's founder, died in 2004.
Lyon, with about 115 employees, works mainly on commercial tugs and barges but also handles smaller Navy vessels, such as berthing barges.
Norfolk Shiprepair, which employs around 60 to 70, does similar work.
Employees at both yards have been informed of the pending sale, Ackiss said. During the past two to three weeks, Lyon has hired a "handful" of Norfolk Shiprepair's workers, and would "take as many as we can" once the deal is closed, he said.
Those workers include welders, machinists, painters and electricians.
"It's just hard getting good workers in these trades anymore," he said.
Ackiss declined to discuss the price of the deal. City real estate records assess the property at $3.74 million.
Norfolk Shiprepair purchased the property in 2000 for $3.09 million, according to city records.
The work load at Lyon has been "fairly stable," Ackiss said. The yard has two floating dry docks capable of lifting barges and oceangoing tugs.
The two yards have informally discussed a sale for around two years and began serious talks last fall, he said.
