BLOOMFIELD, Conn., March 19 /PRNewswire-FirstCall/ -- Kaman Corp.
(Nasdaq: KAMN) reported today that its subsidiary, Kaman Aerospace
International Corporation (Kaman), has reached an agreement with the
Commonwealth of Australia that establishes mutually agreed terms for
conclusion of the SH-2G(A) Super Seasprite program.
Under the terms of the Agreement, ownership of the 11 SH-2G(A) Super
Seasprite helicopters will be transferred to Kaman along with spare parts
and associated equipment. The transfer is subject to US government approval
and the Commonwealth will carry out that process, which could take several
months. Thereafter, Kaman will seek to sell the aircraft to another
customer or customers and will share the proceeds of each sale with the
Commonwealth under a pre-established formula. Kaman has agreed that at
least $37 million (US) of such payments will be made to the Commonwealth
regardless of sales, with at least $25 million (US) to be paid by March
2011, and $6 million (US) each in years 2012 and 2013. Under the agreement,
Kaman will forego payment on approximately $35 million (US) in net unbilled
receivables in exchange for the helicopters, spare parts and equipment,
which will be recorded as inventory. The value of this inventory is
expected to exceed the amount of the net unbilled receivables and the
guaranteed payments.
In commenting on the agreement, Neal J. Keating, chairman, president
and chief executive officer of Kaman Corporation, said, "We appreciate the
Australian government's willingness to work with us to develop a mutually
satisfactory path to conclude their Super Seasprite program. We are also
pleased to have the opportunity to sell these highly capable aircraft to
another customer."
The Kaman Super Seasprite is currently serving with the governments of
Egypt, New Zealand and Poland. The aircraft also served with distinction as
a front-line U.S. Navy helicopter, where its reliability and durability
were well respected.
Kaman Corp. conducts business in the aerospace and industrial
distribution markets.
SOURCE Kaman Corp.
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Related links:
http://www.kaman.com
http://www.prnewswire.com/comp/480450.html /
CONTACT:
Company representatives in U.S., Eric
Remington, Vice President, +1-860-243-6334,
Eric.Remington@kaman.com, or Sal Bordonaro, President, Kaman
Helicopters Division, +1-860-243-7005, Sal.Bordonaro@kaman.com,
both of Kaman Corp.; or Company representatives in Sydney, Steve
Rutter, SH-2G(A) Program Manager of Kaman Corp., Mobile,
+1-860-573-6289, Steve.Rutter@kaman.com; or Jacquelynne Willcox,
Director, Public Affairs, Mobile, +61-419833649,
jwillcox@hillandknowlton.com.au, or Louise Allen, Senior
Executive, +61-2-9286 1205, Mobile, +61-411-029-693,
lallen@hillandknowlton.com.au, both of Hill & Knowlton Australia
for Kaman Corp.
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