Bloomfield-based Kaman Corp., a historic Connecticut manufacturer founded by well-known entrepreneur Charles Kaman in 1945, is going private.
Kaman, a pioneer in rotary-winged flight that has diversified its business over the years into medical equipment components and other areas, announced it has reached an agreement to be purchased by private equity firm Arcline Investment Management L.P. for $1.8 billion.
Arcline Investment, on its website, lists offices in New York, Nashville and San Francisco, and says it has $8.9 billion in cumulative capital commitments.
Arcline Investment plans to make the purchase in an all-cash deal. It’s expected to close in the first half of 2024, pending shareholder and regulatory approval, Kaman said.
Kaman’s board of directors has approved the deal, the company said.
Kaman shareholders will receive $46 per share in cash, which represents a 105% premium over the company’s Jan. 18 closing share price, the companies said. Kaman’s common stock will no longer be listed on any public stock exchange.
For more than a year, Kaman has been undergoing a company-wide transformation that emphasized the importance of focusing on new products.
“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 K. Walsh, Kaman’s chairman, president and CEO. “Arcline recognizes the strength of Kaman’s leadership and team, product portfolio and outstanding employees, and we look forward to benefiting from increased resources, expertise and flexibility as a private company post-closing. We thank Kaman’s many valued employees for helping us reach this important milestone in the Company’s history.”
