Bloomfield’s Kaman to sell distribution unit for $700M

HBJ File Photo Neal J. Keating is stepping down as Kaman's CEO.

Write a Comment

By Joe Cooper

Bloomfield aero- and industrial-parts maker Kaman Corp. has reached an all-cash deal to sell its distribution business to a Greenwich-based investment firm for $700 million.

Kaman announced Wednesday it will sell its distribution segment, which generated $1.1 billion in net revenue last year, to affiliates of Littlejohn & Co. LLC as the manufacturer continues to focus on growing its aerospace and engineered products businesses.

The unit currently distributes more than six million items including electro-mechanical parts, bearings, power transmission, motion control and electrical and fluid power components, and provides other assembly and repair services, to customers in various industries. In 2018, it had 2,200 employees split between approximately 220 locations in the U.S. and Puerto Rico, officials said.

Kaman expects to receive approximately $600 million from the deal, which is projected to close in the third quarter of 2019, subject to customary closing conditions. Officials said the remaining proceeds will be used to pay down about $100 million of debt and accelerate certain development efforts.

“For Kaman this transaction represents an important milestone in our portfolio transformation and the culmination of a thorough strategic review undertaken by our board of directors,” said Neal J. Keating, Kaman’s CEO, chairman and president.

Littlejohn & Co. is focused on private equity and debt investments mainly in middle market companies. It has approximately $10.9 billion in regulatory assets under management.

Kaman officials said the divestiture will allow it more freedom to expand its aerospace segment, which currently employs nearly 3,000 people at 14 facilities worldwide. The unit is expected to generate revenue between $740 million and $760 million in 2019.