The conditional deal between BAE Systems and American Maritime Holdings, MHI's parent company, is covered by a definitive agreement and is expected to close early next year subject to regulatory approval and other provisions.
Terms of the proposed transaction weren't disclosed.
"This acquisition is fully aligned with our business strategy to continue to grow in the maritime industry by enhancing our efficiencies and breadth of capabilities, which is consistent with our global strategy to deliver value to our customers with cost-effective solutions," said Bill Clifford, president, BAE Systems Ship Repair.
"The proposed addition of MHI's operations and highly skilled workforce would strengthen our ability to serve both military and commercial customers in the repair, maintenance and modernization sectors of the naval support and upgrade market."
BAE Systems Ship Repair is a ship repair, modernization and overhaul business for non-nuclear vessels and serves the U.S. Navy among others. MHI is a marine repair, overhaul, and conversion company serving the Navy, Military Sealift Command, Maritime Administration and commercial ship owners and operators.
MHI operates a shipyard, pier and waterfront facilities in Norfolk.
Notable deaths of 2014 [PHOTOS]