Northrop Grumman Corp.’s Board of Directors approved a spinoff Tuesday of its shipbuilding subsidiary, Huntington Ingalls Industries Inc.
“We have determined that a spin-off of our shipbuilding business will best serve our shareholders, customers and employees,” Wes Bush, CEO and president of Northrop Grumman, said in a statement. “The separation will enable HII and Northrop Grumman to focus more intently on their respective customers.”
The company, which will be based in Newport News, will include the massive shipbuilding facility in the city, which is the only builder of U.S. nuclear-powered aircraft carriers and one of two builders of Virginia-class nuclear-powered submarines. It also includes Ingalls shipyard in Pascagoula, Miss., and a shipyard in Alabama that is scheduled to close in 2013.
HII had $6.7 billion in revenues in 2010. The spinoff is subject to the approval of the U.S. Securities and Exchange Commission.
Under the plan, Northrop Grumman stockholders as of March 30 will receive one share of HII for every six shares of Northrop Grumman common stock they own on March 31. HII common stock is expected to begin trading on the New York Stock Exchange under the symbol HII WI beginning on March 22 and under HII after the March 31 distribution date.
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