Aerospace parts maker Kaman to be taken private for $1.29 billion, shares surge

(Reuters) -Aerospace parts maker Kaman Corp said on Friday it has agreed to be taken private by Arcline Investment Management for $1.29 billion.

Shares of the Bloomfield, Connecticut-based company, which makes aircraft components such as wheels and brakes, more than doubled to $45.14 in morning trade. The stock is set for its biggest one-day jump in almost two years, if gains hold.

Under the terms of the deal, Kaman shareholders will receive $46.00 per share in cash, representing a premium of 105% over the stock's last close.

The deal comes at a time when airlines, grappling with a shortage of planes amid surging demand for air travel, are flying jets for longer, necessitating more repairs and services.

Kaman counts the U.S. military, planemaker Boeing and defense firms Lockheed Martin and RTX among its customers.

The deal, expected to close in the first half of 2024, will be financed through a combination of committed debt and equity financing.

J.P. Morgan Securities is the exclusive financial adviser to Kaman, while Morgan Stanley is the exclusive financial adviser to private-equity firm Arcline.

(Reporting by Kannaki Deka in Bengaluru; Editing by Shilpi Majumdar)