Kaman Corp. [KAMN] last Friday said it has agreed to be acquired by the private equity firm Arcline Investment Management
for $1.8 billion in cash, taking the nearly 80-year-old aerospace company private once the transaction closes, which is expected in the first half of 2024.
Arcline is paying $46 per share for Kaman’s stock, a 105 percent premium above the company’s closing price last Thursday. The deal has been approved by Kaman’s board and must still receive approvals from regulators and Kaman shareholders.
Founded by aviation pioneer, guitar enthusiast, and philanthropist Charlie Kaman in 1945, Kaman Corp.’s three operating segments make proprietary aircraft bearings, seals, wheels, brakes, metallic and composite aerostructures for commercial, military and general aviation aircraft, fuses and other precision safe and arming solutions for missile and bomb systems, and support for the company’s SH-2G Super Seasprite maritime helicopters and K-MAX heavy lift manned helicopter, and is developing the KARGO UAV unmanned aircraft system for autonomous medium lift logistics.
Kaman expects to report between $765 million and $775 million in sales in 2023, up from $688 million in 2022. The company also expects to report between $6.5 million, 23 cents earnings per share (EPS) and $12.2 million, 43 cents EPS, in net income in 2023.
“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,” Ian Walsh, chairman, president and CEO of Kaman, said in a statement.
Arline said that it will work with Kaman to accelerate investments in new product development and strategic acquisitions.
Charlie Kaman worked for helicopter pioneer Igor Sikorsky before founding his namesake company. Along the way, he also founded Ovation Guitars, which was divested in 2008. Kaman died in 2011.
Kaman’s financial adviser on the pending transaction with Arcline is J.P. Morgan Securities. Arcline’s adviser is Morgan Stanley & Co. In the aerospace and defense space, Arcline also owns Fairbanks Morse Defense, Integrated Polymer Solutions, Qnnect, Quantic Electronics, and Signia Aerospace.
