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EXHIBIT 99.2
FRIEDE GOLDMAN HALTER, INC.
PRESS RELEASE
For immediate release
FRIEDE GOLDMAN HALTER AND BOLLINGER SHIPYARDS
SIGN DEFINITIVE AGREEMENT REGARDING SALE
OF HALTER'S VESSEL REPAIR UNIT
GULFPORT, MS, MAY 31, 2000 - Friede Goldman Halter, Inc. (NYSE: FGH) today
announced that it has signed a definitive agreement to sell its vessel repair
unit to Bollinger Shipyards, Inc. of Lockport, LA for $80 million. The all-cash
transaction, which is expected to be completed in July 2000, is structured as an
asset sale and is subject to certain conditions including approval under the
Hart Scott Rodino Act.
The vessel repair business being acquired by Bollinger is an operating unit of
Halter Marine, Friede Goldman Halter's Vessel segment, and consists of five
facilities devoted to vessel repair and maintenance that are located in
Louisiana and Texas. Halter had increased its focus on the vessel repair
business with the purchase in 1997 of three of the repair yards.
"This divestiture of our vessel repair unit is a result of an exhaustive and
strategic review of all Friede Goldman Halter's operating assets and business
activities," said J. L. Holloway, company chairman and chief executive
officer. "We undertook to evaluate the strategic fit of each of our business
lines. We determined that the vessel repair business did not fit our primary
and long-term focus on large-scale offshore energy projects, highly complex
commercial and government shipbuilding, and engineered products.
"The sale of our vessel repair unit also underscores our commitment to the new
construction side of the vessel business," Holloway said. "Halter's extensive
inventory of vessel designs and reputation for quality construction are very
valuable assets. Halter has a 54-year history in designing and building ocean-
going vessels for offshore, government and other commercial applications. We
plan to focus our six vessel construction shipyards on capitalizing on Halter's
experience and its position as the fourth-largest shipbuilder in the United
States," Holloway said.
"The completion of this $80 million transaction and an additional $33 million in
tax refunds expected to be collected during 2000 are anticipated to provide
significant additional liquidity for Friede Goldman Halter as it enters a
strengthening marketplace," said John Alford, president and chief operating
officer.
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FRIEDE GOLDMAN HALTER
MAY 31, 2000
PAGE 2
"The sale of the vessel repair business also reduces the number of facilities
that the company is actively operating, which was one of the goals of the
merger. Since the merger was completed on November 3, Friede Goldman Halter has
either sold or closed eight of its combined 24 domestic shipyards. Management
believes that by concentrating production activities in fewer facilities, the
company will be able to achieve meaningful incremental operating efficiencies
and cost savings. In addition, we are projecting a significant decrease in
selling, general and administrative expenses in 2000 and 2001 from 1999 levels,"
Alford concluded.
Friede Goldman Halter is a world leader in the design and manufacture of
equipment for the maritime and offshore energy industries. Its operating units
are Friede Goldman Offshore (construction, upgrade and repair of drilling units,
mobile production units and offshore construction equipment), Halter Marine
(construction and repair of ocean-going vessels for commercial and governmental
markets), FGH Engineered Products Group (design and manufacture of cranes,
winches, mooring systems and marine deck equipment), and Friede & Goldman Ltd.
(naval architecture and marine engineering).
FOR INFORMATION REGARDING THIS OR ANY OF OUR PRESS RELEASES, CONTACT:
JOHN S. HASTINGS
Investor Relations and Corporate Communications
(228) 897-4987
*Note: This press release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of Section 27A of The Securities
Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of historical facts,
included in this press release that address activities, events or developments
that Friede Goldman Halter expects, believes or anticipates will or may occur in
the future, are forward-looking statements. These statements are based on
certain assumptions and analyses made by Friede Goldman International Inc. in
light of its experience and its perception of historical trends, current
conditions, expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
Friede Goldman Halter and which are discussed in Friede Goldman Halter's
Registration Statement on Form S-1, the 1999 Annual Report on Form 10-K, and the
company's most recently filed Form 10-Q. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements.
