Kaman Corp . (NYSE:) introduced on Friday that it has entered into an settlement for its acquisition by non-public fairness agency Arcline Funding Administration in an all-cash deal valued at $1.8 billion.

The transaction, slated to be finalized within the first half of 2024, will see Kaman shareholders obtain $46 per share in money, representing a 105% premium to the final closing worth. Following the completion, the aerospace firm will transition to a privately held entity.

In keeping with the phrases of the deal, this acquisition interprets to 2.3 instances gross sales and 15.0 instances EBITDA based mostly on the 2024 estimates, and a couple of.2 instances gross sales and 13.4 instances EBITDA based mostly on the 2025 estimates, KeyBanc analysts mentioned in a observe.

Analysts recommend that buyers are prone to view this as a constructive improvement, particularly contemplating the potential challenges KAMN might have confronted in transitioning its portfolio to progress put up the conclusion of the JPF fuzing program in 2023.

“We anticipate to obtain or intend to hunt compensation for funding banking providers from Kaman Company inside the subsequent three months. Through the previous 12 months, Kaman Company has been a consumer of the agency or its associates for non-securities associated providers,” the analysts wrote.