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* Vigor to pay $22.27/shr in cash
* Deal expected to close in Q1 2011
Dec 23 (Reuters) - Todd Shipyards Corp TOD.N agreed to be bought by privately owned Vigor Industrial LLC in a cash deal worth $130 million.
Oregon-based Vigor Industrial, which repairs ships through Vigor Marine LLC and Cascade General at Portland, will buy Todd for $22.27 a share, at a premium of 6 percent to Todd's close of $21 on Wednesday.
Seattle-based Todd, which provides ship repair and maintenance work to the U.S. Navy, the U.S. Coast Guard and other government and commercial firms, said its management and contracts will remain in place.
Todd will pay Vigor $4.55 million and Vigor will pay the company $6.5 million in case of termination.
The deal is expected to close in the first quarter of 2011.
Todd may solicit superior proposals from third parties through Jan. 28. (Reporting by Soham Chatterjee in Bangalore; Editing by Don Sebastian)