Kaman to pay $330M for Calif. precision-parts maker

PHOTO | Lanny A. Nagler Kaman Corp. Chairman and CEO Neal Keating stands within the aerospace manufacturer's Bloomfield plant.

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By Sean Teehan

Bloomfield aero- and industrial-parts maker Kaman Corp. said Tuesday it will acquire a California precision-parts manufacturer for $330 million, as the company focuses on growth through further acquisitions.

In an earnings call Tuesday morning Kaman CEO and Chairman Neal Keating said the acquisition of Bal Seal Engineering Inc. — a 500-employee global operation that makes precision seals and springs for the medical, aerospace and defense markets — will strengthen Kaman’s position for growth.

“The addition of Bal Seal enhances our position as a leading provider of highly proprietary engineered products, broadens our access to high-growth end markets such as medical technologies and industrial applications,” Keating said.

Following the cash purchase, Kaman will still $700 million for growth purposes, which likely means additional acquisitions.

The deal was announced as Kaman posted third-quarter profits of $142.8 million, or $5.08 per diluted share, a significant increase over the same period last year, when Kaman’s profits were $1.4 million, or 5 cents per diluted share.

Kaman posted net sales of $182.7 million during the quarter, up from $157.1 million in the year-ago period.

Meantime, the Bal Seal Engineering deal follows the $700 million sale of Kaman’s distribution segment in August to Greenwich investor Littlejohn & Co.