Why Aerospace Company Kaman Shares Are Skyrocketing Today

Kaman Corporation KAMN shares are trading higher in the premarket session on Friday.

The company inked a pact to be acquired by private equity firm Arcline Investment Management in an all-cash transaction with a total enterprise value of approximately $1.8 billion. 

Kaman, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut, conducts business in the aerospace & defense, industrial and medical markets.

Under the terms of the agreement, Kaman shareholders will receive $46.00 per share in cash. The per-share purchase price represents a premium of approximately 105% over Kaman’s closing share price on January 18, 2024.

“Over the last several quarters, we have made significant progress executing our strategy by transforming our portfolio, through investing in innovation, pivoting to new growth technologies, and optimizing the Company’s cost structure,” said Ian K. Walsh, Kaman Chairman, President and Chief Executive Officer. 

During the last reported quarter, the company bolstered the full-year outlook to the range of $765.0 million-$775.0 million (prior view: $730.0 million-$750.0 million). The street view stands at $768.57 million. 

Upon completion of the transaction, Kaman will become a privately held company. Arcline intends to fund the transaction with a combination of committed debt and equity financing.

The transaction is expected to close in the first half of 2024. Upon completing the transaction, Kaman’s common stock will no longer be listed on any public stock exchange.

Price Action: KAMN shares are trading higher by 101.15% to $45.12 on the last check Friday.