RESERVE, La. — On June 9, the Port of South Louisiana and maritime company Host agreed to extend the due diligence period for PortSL’s potential acquisition of Avondale Global Gateway. The port said the extension will allow its team to complete a feasibility analysis of the proposed acquisition. The window will now stay open until Aug. 31, 2023.
The Avondale deal has plenty of supporters, but some critics have said that $445 million is too steep a price to pay for the 254-acre logistics hub on the site of the former Avondale Shipyard. Host, which purchased the shuttered property from Huntington Ingalls for $60 million in 2018, said it has invested more than $100 million to bring it back into commerce. The company said it grossed $46 million in total revenue at Avondale in 2022 from the property and from stevedoring.
“The Port of South Louisiana’s purchase of the Avondale facility has the potential to transform south Louisiana and position us as a global commerce leader,” said PortSL CEO Paul Matthews in a press release. “We are taking our time to analyze every aspect of this potential acquisition. We have retained multiple experts to conduct physical and financial analyses. We will ensure the State of Louisiana gets the best deal possible. Once the feasibility analysis is complete, we will negotiate final terms of the acquisition, including price.”
“Host remains committed to working with the Port of South Louisiana as it completes its due diligence. We bought Avondale Global Gateway in 2018 because we believed in the possibilities for economic growth at this site and on the West Bank of Jefferson Parish. In only five years, we transformed the former shipyard into a center of multimodal commerce. Under the Port of South Louisiana’s ownership and our management as terminal operator, Avondale Global Gateway will be structured to again serve as an anchor of our region’s economy for generations to come,” said Adam Anderson, chairman and CEO of Host.
