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Kaman To Sell Distribution Segment To Littlejohn & Co. For $700 Mln In Cash

Kaman Corp. (KAMN) agreed Wednesday to sell its Distribution segment to affiliates of Littlejohn & Co., LLC for total cash consideration of $700 million, subject to customary closing conditions and working capital adjustments.

Kaman's Distribution Segment is a leading distributor of more than six million items including electro-mechanical, bearings, power transmission, motion control and electrical and fluid power components, as well as automation and MRO supplies, to customers in virtually every industry.

The sale positions Kaman with a stronger balance sheet to further invest in high margin products and enhance shareholder value. It will on accelerating growth of aerospace and engineered products businesses.

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.

Following the completion of the transaction, Kaman will continue to design and manufacture critical components, structures, and systems for commercial and military customers.

Kaman expects to receive about $600 million in net proceeds from the transaction. It will allocate proceeds to pay down about $100 million of debt and accelerate internal development efforts. The company will also pursue strategic acquisitions focused on attractive engineered product end markets.

The transaction is expected to close in the third quarter of 2019, subject to customary closing conditions and the receipt of any necessary consents and approvals.

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