Arcline Investment Management (Arcline), a growth-oriented private equity firm focused on investments in industrial businesses, is to acquire Kaman Corporation (Kaman), a manufacturer of bearings and other parts for the aerospace and defence sectors, in an all-cash deal worth $1.8bn.
Upon completion of the transaction, which will see shareholders receive $46.00 per share in cash, Kaman will become a privately held company.
The per share purchase price represents a premium of approximately 105% over Kaman’s closing share price on 18 January 2024, the last full trading day prior to the transaction announcement, and a premium of approximately 110% over the volume weighted average price (VWAP) of Kaman common stock for the 90 days ending 18 January 2024.
The transaction, which has been unanimously approved by Kaman’s board of directors, is expected to close in the first half of 2024, subject to customary closing conditions, including approval by Kaman shareholders and receipt of required regulatory approvals.
Arcline intends to fund the transaction with a combination of committed debt and equity financing.
JP Morgan Securities is serving as exclusive financial advisor to Kaman. Skadden, Arps, Slate, Meagher & Flom and Wiggin and Dana are acting as legal counsel to Kaman.
Morgan Stanley is serving as exclusive financial advisor to Arcline. Latham & Watkins and Paul Hastings are acting as legal counsel to Arcline.
