© Reuters. Kaman (KAMN) reaches agreement to be acquired by Arcline for $1.8 billion
(Updated: January 19, 2024, 3:38 pm EST)
Kaman Corp. . (NYSE:) announced Friday that it has reached an agreement to be acquired by private equity firm Arcline Investment Management in an all-cash deal valued at $1.8 billion.
The transaction, scheduled for completion in the first half of 2024, will allow Kaman shareholders to receive $46 per share in cash, representing a 105% premium over the latest closing price. Once completed, the aerospace company will become a private entity.
Under the terms of the agreement, this acquisition translates into 2.3 times sales and 15.0 times EBITDA based on 2024 estimates, and 2.2 times sales and 13.4 times EBITDA based on 2025 estimates, KeyBanc analysts said in a note.
“We believe investors will overwhelmingly view this as a positive deal, as Kaman likely faced a multi-year challenge in returning its portfolio to growth following the completion of the JPF merger program in 2023,” the analysts wrote. .
