Analysts say investors will ‘overwhelmingly’ view Arcline deal as a positive By

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© Reuters. Kaman (KAMN) reaches deal to be acquired by Arcline for $1.8 billion

(Updated – January 19, 2024 3:38 PM EST)

Kaman Corp . (NYSE:) announced on Friday that it has entered into an agreement for its acquisition by private equity firm Arcline Investment Management in an all-cash deal valued at $1.8 billion.

The transaction, slated to be finalized in the first half of 2024, will see Kaman shareholders receive $46 per share in cash, representing a 105% premium to the last closing price. Following the completion, the aerospace company will transition to a privately held entity.

According to the terms of the deal, this acquisition 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, KeyBanc analysts said in a note.

“We think investors will overwhelmingly view this as a positive deal as Kaman likely faced a multi-year challenge to transition its portfolio back to growth after the sunset of the JPF fuzing program in 2023,” analysts wrote.

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