Kaman Corp. agreed to a buyout Jan. 19 by a private equity firm at a value that was twice its recent trading price.
The Bloomfield, Connecticut-based aerospace company, which produces helicopters and other aerospace products at a Jacksonville facility, agreed to a $1.8 billion offer from Arcline Investment Management L.P.
Arcline will pay $46 in cash for every Kaman share, about double its closing price of $22.43 the day before the announcement.
“Given the rigorous review of alternatives we recently completed, we are confident this transaction maximizes value for shareholders and is in the best interest of Kaman as well as our employees, customers and other stakeholders,” Kaman CEO Ian Walsh said in a news release.
Kaman announced a restructuring plan in December 2022 that included consolidating operations in Jacksonville and closing an Orlando facility, but the company did not give details of the impact on its North Jacksonville facility.
Kaman media relations representatives did not respond to email and phone messages about its employment level in Jacksonville. JAXUSA Partnership, the economic development division of JAX Chamber, lists Kaman with 280 workers.
“Over the past several quarters, we have made tremendous progress executing on our transformation strategy by investing in innovation, reshaping our portfolio, pivoting to new technologies and platforms, and strengthening our financial performance,” Walsh said in a message to employees.
“This progress, the strategic moves we have made these past two years, and continued focus on profitable growth, generated interest in our company from outside parties,” he said.
Walsh said Arcline is an ideal partner for Kaman because it invests in technology-driven industrial companies.
The acquisition by Arcline “will give us increased flexibility to invest in our growth and innovation,” he said.
“Kaman has long been a trusted solutions provider of engineered components and subsystems to mission-critical markets, and we believe the Company is in a strong position to grow and benefit from attractive tailwinds,” Arcline said in the news release.
The companies expect to close the transaction in the first half of 2024.