Littlejohn & Co.’s $700 Million Acquisition of Kaman Corporation’s Distribution Unit


Robert W. Baird & Co. and J.P. Morgan Securities LLC served as financial advisors to Kaman and K&L Gates LLP served as the Company’s lead legal advisor for this transaction. Debt financing commitments in support of the acquisition have been provided by Jefferies, Antares Capital, and Bank of Montreal. Gibson, Dunn and Crutcher LLP served as Littlejohn & Co.’s legal advisor.

Private equity investment firm Littlejohn & Co., LLC executed the acquisition of Kaman Corporation for total cash consideration of $700 million, excluding certain working capital adjustments.

Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in middle market companies. With approximately $10.9 billion in regulatory assets under management, the firm seeks to build sustainable success for its portfolio companies through a disciplined approach to engineering change.

Kaman Corporation (NYSE: KAMN) is a premier designer and manufacturer of critical components, structures, and systems for commercial, military, and industrial customers.

Following the completion of the transaction, Kaman will continue to design and manufacture critical components, structures, and systems for commercial and military customers. The Aerospace Segment currently operates out of fourteen facilities around the world with almost 3,000 employees and is expected to generate between $730 and $760 million of revenue in 2019.

Kaman will maintain its disciplined capital deployment strategy, allocating proceeds to pay down approximately $100 million of debt and accelerate internal development efforts. In addition, the Company will pursue strategic acquisitions focused on attractive engineered product end markets. Finally, Kaman remains committed to its well-established practice of returning capital to shareholders through its quarterly cash dividend and share repurchase program.

K&L Gates advised Kaman with a team led by Corporate/M&A partner Jamie Bruce (Picture, Charleston), assisted by corporate partners Ernie Cochran (Charleston) and Carty Bibee (Charleston), capital markets partner Mark Johnson (Boston), antitrust partner Allen Bachman (Washington, DC), tax partner Rob Starin (Seattle), antitrust counsel Ken Knox (Washington, DC), and associates Lauren McFadden (Charleston), Eric Jacobi (Washington, DC), and Reed deMent (Charleston).

Involved fees earner: Allen Bachman – K&L Gates; Cartwright Bibee – K&L Gates; James Bruce – K&L Gates; Ernie Cochran – K&L Gates; Reed deMent – K&L Gates; Eric Jacobi – K&L Gates; Mark Johnson – K&L Gates; Ken Knox – K&L Gates; Lauren McFadden – K&L Gates; Robert Starin – K&L Gates;

Law Firms: K&L Gates;

Clients: Kaman Corporation;

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Author: Ambrogio Visconti