Kaman Corp . (NYSE:KAMN) 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.
Analysts suggest that investors are likely to view this as a positive development, especially considering the potential challenges KAMN could have faced in transitioning its portfolio to growth post the conclusion of the JPF fuzing program in 2023.
“We expect to receive or intend to seek compensation for investment banking services from Kaman Corporation within the next three months. During the past 12 months, Kaman Corporation has been a client of the firm or its affiliates for non-securities related services,” the analysts wrote.