4 Firms Steer $1.8B Kaman Corp Private Deal

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4 Firms Steer $1.8B Kaman Corp Private Deal

In a thrilling financial maneuver, aircraft component manufacturer Kaman Corp. has inked a deal to go private, with Arcline Investment Management at the helm, steering through the complex $1.8 billion acquisition. The blockbuster agreement, coordinated by a quartet of powerhouse law firms, sets the stage for a transformative shift in Kaman’s trajectory.

4 Firms Steer $1.8B Kaman Corp Private Deal : Four Legal Titans Chart the Course

In a strategic dance of legal prowess, Skadden Arps Slate Meagher & Flom LLP and Wiggin and Dana LLP have taken the reins on behalf of Kaman, based in Bloomfield, Connecticut. Simultaneously, Latham & Watkins LLP and Paul Hastings LLP are navigating the intricate legal landscape for Arcline, a private equity giant boasting nearly $9 billion in capital commitments.

 Premium Price and Market Turbulence

The deal, anticipated to conclude within the first half of this year, mandates Kaman shareholders to receive a staggering $46 per share in cash. This marks a jaw-dropping 105% premium over Kaman’s Thursday closing share price, igniting a surge in the stock value by an astonishing 102% to $45.12 per share in Friday morning trading.

4 Firms Steer $1.8B Kaman Corp Private Deal : Kaman’s Flight into Privatization

Ian K. Walsh, Kaman’s chair and CEO, characterized the deal as the culmination of “robust engagement with Arcline” and meticulous evaluation of potential value creation opportunities. The privatization move, set to delist Kaman and transform it into Arcline’s wholly owned subsidiary, has received unanimous approval from Kaman’s board, urging shareholders to greenlight the game-changing transaction.

Financial Maestros and Advisory Forces

Morgan Stanley & Co. LLC emerges as the exclusive financial adviser to Arcline, orchestrating the financial intricacies with a combination of committed debt and equity financing. On the Kaman front, J.P. Morgan Securities LLC stands as the exclusive financial adviser, ensuring a seamless financial transition.

4 Firms Steer $1.8B Kaman Corp Private Deal : Unveiling the Power Players

Founded in 1945, Kaman is a stalwart in the aircraft component industry, manufacturing crucial elements such as aircraft bearings, wheels, brakes, and arming solutions for missile and bomb systems. Arcline, in a statement, hailed Kaman as a “trusted solutions provider,” poised to leverage its rich history and portfolio of brands in mission-critical markets.

Legal Eagles in Action

Skadden’s team, including M&A partners Maxim Mayer-Cesiano and Marc Gerber, has played a pivotal role in Kaman’s corner. Latham’s team, led by corporate partners Josh Dubofsky and Navneeta Rekhi, takes center stage for Arcline, while Paul Hastings, with private equity finance partner Holly Snow at the helm, provides critical counsel to Arcline.