Private equity firm Arcline Investment Management has agreed to acquire Kaman (NYSE: KAMN), a Bloomfield, Connecticut-based aerospace and defense contractor, for approximately $1.8 billion, or $46 per share in cash.
Established in 1945, Kaman develops and sells proprietary aircraft bearings and components; proprietary spring energized seals, springs and contacts; metallic and composite aerostructures; brakes, wheels and related hydraulic components for military and commercial helicopters, fixed-wing aircraft and unmanned aerial vehicles, according to a joint release published Friday.
Both parties expect the deal to close in the first half of 2024, subject to approval by Kaman shareholders, regulatory clearances and other customary closing conditions.
“Over the last several quarters, we have made significant progress executing our strategy by transforming our portfolio, through investing in innovation, pivoting to new growth technologies, and optimizing the Company’s cost structure,” said Ian Walsh, chairman, president and CEO of Kaman.
“Arcline recognizes the strength of Kaman’s leadership and team, product portfolio and outstanding employees, and we look forward to benefitting from increased resources, expertise and flexibility as a private company post-closing,” added Walsh.
Kaman will become a privately held company and a wholly owned subsidiary of Arcline-managed investment funds upon completion of the transaction, which will be funded by the private equity firm through committed debt and equity financing. The purchase price per share represents a premium of about 105 percent over Kaman’s closing share price on Thursday, Jan. 18.
“We look forward to working closely with Ian and the rest of the talented Kaman team to drive further growth through accelerated investments in both new product development and strategic acquisitions,” Arcline stated.
J.P. Morgan Securities acts as Kaman’s exclusive financial adviser. Skadden, Arps, Slate, Meagher & Flom and Wiggin and Dana advise Kaman on the deal’s legal aspect.
Arcline’s exclusive financial adviser in the deal is Morgan Stanley & Co. Latham & Watkins and Paul Hastings serve as legal counsel to the firm.
