Kaman to be Acquired by Arcline for $1.8 Billion

Kaman Corp. has recently announced that it has entered into a definitive agreement to be acquired by Arcline Investment Management, L.P. in an all-cash transaction worth $1.8 billion. Under the terms of the agreement, Kaman shareholders will receive $46.00 per share in cash, representing a premium of approximately 105% over Kaman's closing share price on January 18, 2024.

This acquisition marks an important milestone for Kaman, as it will become a privately held company under Arcline's ownership. The transaction 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.

Kaman, founded in 1945, is a leading provider of engineered components and subsystems in the aerospace & defense, industrial, and medical markets. The company produces and markets proprietary aircraft bearings and components, super precision miniature ball bearings, and complex metallic and composite aerostructures for commercial, military, and general aviation fixed and rotary-wing aircraft, among other products.

Arcline Investment Management is a growth-oriented private equity firm with $8.9 billion in cumulative capital commitments. Arcline specializes in investing in technology-driven industrial businesses that have a significant impact on society and enable a better future.

The acquisition of Kaman by Arcline is expected to benefit both companies. Arcline recognizes the strength of Kaman's leadership and team, as well as its product portfolio and outstanding employees. The increased resources, expertise, and flexibility that Arcline brings to the table will enable Kaman to drive further growth through accelerated investments in new product development and strategic acquisitions.

The transaction has been unanimously approved by the Kaman Board of Directors, who recommend that Kaman shareholders vote in favor of the transaction. J.P. Morgan Securities LLC is serving as exclusive financial advisor to Kaman, while Skadden, Arps, Slate, Meagher & Flom LLP and Wiggin and Dana LLP are acting as legal counsel to Kaman.

Morgan Stanley & Co. LLC is serving as exclusive financial advisor to Arcline, with Latham & Watkins LLP and Paul Hastings LLP acting as legal counsel.

Upon completion of the transaction, Kaman will become a wholly owned subsidiary of investment funds managed by Arcline, and Kaman's common stock will no longer be listed on any public stock exchange.

This acquisition brings significant opportunities for Kaman's future growth and development. As a privately held company, Kaman will have increased agility and flexibility to pursue its strategic objectives. The transaction is expected to close in the first half of 2024, subject to regulatory approvals and approval by Kaman shareholders.

In conclusion, the acquisition of Kaman by Arcline represents a significant milestone for both companies. It allows Kaman to continue its growth trajectory with the support and resources of Arcline, while providing Arcline with a strong and innovative addition to its portfolio of industrial businesses. This transaction is a testament to Kaman's leadership and team, as well as the value it brings to its customers and stakeholders.