Aerospace and defense technology producer Kaman (NYSE:KAMN) is skyrocketing today on news that it will be taken private. According to recent reports, the company has agreed to a take-private all-cash $1.8 billion deal with private equity firm Arcline Investment Management. This news has sent KAMN stock up by more than 100% today after weeks of very little price action. The deal is expected to close within the first half of 2024, although no date has been specified. Still, the market is clearly reacting very well to this news.
While the deal news has been excellent for Kaman investors, it does raise some questions. When will KAMN stock cease trading on the New York Stock Exchange? And how much of a payout will investors receive? Let’s take a closer look.
What’s Happening With KAMN Stock?
As noted, KAMN stock has been rising steadily since markets opened today. As of this writing, shares are up more than 100% as momentum builds for the take-private deal. Despite operating in the fast-growing aerospace and defense sector, Kaman shares hadn’t seen much growth this year until news of the deal broke. Indeed, this news has been exactly the catalyst that KAMN stock needed to break out.
Since neither company has issued a specific date for the deal’s closure, it’s currently unknown exactly when KAMN stock will stop trading publicly. What we do know is that, when it happens, shareholders will receive a cash payout of $46 per share. That’s a slight boost from current levels of around $45 per share but a substantial gain from where KAMN traded just 24 hours ago.
Arcline noted the following in a statement released this morning:
“We have tremendous respect and admiration for Kaman’s team, history, and its portfolio of brands. Kaman has long been a trusted solutions provider of engineered components and subsystems to mission-critical markets, and we believe the Company is in a strong position to grow and benefit from attractive tailwinds. We look forward to working closely with Ian and the rest of the talented Kaman team to drive further growth through accelerated investments in both new product development and strategic acquisitions.”
Until now, KAMN stock has practically stood still over the past year, failing to demonstrate any real growth. This trend had caused experts to write it off, citing its overvalued nature. With that in mind, a take-private offer may be the best thing for both Kaman and its shareholders. Moving forward, investors should watch for updates about when the deal will close.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
