Kaman Corp to be Acquired by Arcline in $1.8 Billion Deal
Kaman Corp (NYSE: KAMN) has announced its agreement to be acquired by private equity firm Arcline Investment Management in an all-cash deal valued at $1.8 billion. This strategic move is expected to provide significant benefits for both companies involved and signifies a major development in the aerospace industry.
All-Cash Acquisition Set to Make Kaman a Privately Held Entity
Under the terms of the deal, which is scheduled to be finalized in the first half of 2024, Kaman shareholders will receive $46 per share in cash. This price represents a 105% premium to the last closing price, demonstrating the confidence that Arcline has in Kaman’s future prospects. Once the acquisition is complete, Kaman will transition from a publicly traded company to a privately held entity, allowing for greater flexibility and strategic decision-making.
Analysts Highlight Favorable Metrics for Kaman-Arcline Deal
According to analysts at KeyBanc, the acquisition of Kaman by Arcline is financially favorable for both parties. They note that the deal translates to 2.3 times sales and 15.0 times EBITDA based on the 2024 estimates, and 2.2 times sales and 13.4 times EBITDA based on the 2025 estimates. These metrics indicate the strong value proposition that Arcline sees in Kaman and its potential for future growth.
Transition to Growth: Kaman’s Positive Outlook Post-Acquisition
The Kaman-Arcline deal comes at a crucial time for Kaman Corp as it looks to navigate the challenges of transitioning its portfolio back to growth after the sunset of the JPF fuzing program in 2023. Analysts believe that this acquisition will provide the necessary resources and expertise to drive Kaman’s growth in the coming years. With the backing of a private equity firm like Arcline, Kaman will have the opportunity to expand its market presence and explore new avenues for innovation.
Investors Expected to Welcome Kaman-Arcline Deal as a Positive
Industry experts anticipate that investors will overwhelmingly view the Kaman-Arcline deal as a positive development for the company. The acquisition will not only provide immediate value through the cash consideration for shareholders but also position Kaman for long-term success. With the financial support and strategic guidance of Arcline, Kaman will be well-equipped to seize new opportunities and navigate the changing dynamics of the aerospace industry.
In conclusion, the acquisition of Kaman Corp by Arcline Investment Management represents a significant milestone for both companies. The all-cash deal valued at $1.8 billion will make Kaman a privately held entity and provide the necessary resources for growth. Analysts believe that this acquisition will be beneficial for Kaman’s future prospects, and investors are expected to view the deal favorably. As the aerospace industry continues to evolve, this strategic move positions Kaman for success in the years to come.
Analyst comment
Positive news: Kaman Corp will be acquired by Arcline Investment Management in a $1.8 billion all-cash deal. This acquisition is expected to provide significant benefits for both companies and signifies a major development in the aerospace industry. Analysts believe that this deal is financially favorable for both parties and will help drive Kaman’s growth. Investors are expected to view the deal positively, as it provides immediate value and positions Kaman for long-term success.
