Kaman Corp Acquired by Arcline Investment for $1.8 Billion

Summary

  • Kaman Corp. has announced its acquisition by Arcline Investment Management, a private equity firm, in an all-cash deal valued at $1.8 billion.
  • The acquisition will transition Kaman Corp into a privately held entity, with shareholders set to receive $46 per share in cash.
  • The transaction is estimated to be concluded in the first half of 2024.
  • Analysts expect a positive reaction from investors due to potentials challenges KAMN may have faced in its portfolio transition to growth.

Kaman Corp announced on Friday its plans to be acquired by private equity firm, Arcline Investment Management. The all-cash deal is valued at $1.8 billion.

Deal Terms and Expectations

The acquisition, scheduled for completion in the first half of 2024, will give Kaman shareholders $46 per share in cash, a substantial 105% premium to the last recorded closing price. After the deal, Kaman will change its status to a privately held corporation.

Based on 2024 and 2025 financial estimates, analysts approximate that this acquisition represents 2.3 and 2.2 times sales and 15.0 and 13.4 times EBITDA, respectively. KeyBanc analysts shared these insights in a recent note.

Investor Response

Analysts are optimistic about the investor response to this development, given the potential obstacles KAMN may have encountered while transitioning its portfolio to growth after the JPF fuzing programme ends in 2023.

“We anticipate receiving or plan to apply for compensation for investment banking services from Kaman Corporation in the next three months. In the last year, Kaman Corporation has been a client of the firm or its affiliates for non-securities related services,” it was communicated.

Impact on Trading

This financial development could potentially influence trading, particularly in sectors related to Aerospace and other assets linked with Kaman Corp’s operations. Careful monitoring of these asset classes could yield insightful trading opportunities.

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