BLOOMFIELD, Conn., June 12 /PRNewswire-FirstCall/ -- Kaman Corp.
(Nasdaq: KAMN) today announced that its subsidiary, Kaman Aerospace Group,
Inc. has acquired Brookhouse Holdings, Limited, a leader in the design and
manufacture of composite aerostructures, aerospace tooling, and repair and
overhaul services based in Darwen, Lancashire, England. The purchase price
was 43 million pounds sterling ($85.1 million based on an exchange rate of
1.98) in cash, and was funded by borrowings through Kaman's revolving
credit agreement. The Company expects the acquisition to be neutral to its
earnings per share in 2008 and slightly accretive in 2009.
Neal J. Keating, chairman, president and chief executive officer of
Kaman Corp., said, "This is an excellent acquisition for Kaman that
furthers many of our strategic goals for the Aerostructures segment.
Brookhouse has developed a reputation as a leading edge technology
composites company, has solid growth prospects, and brings with it strong
relationships with prime manufacturers in both the military and commercial
markets. The acquisition accelerates the Aerostructures segment's overall
growth, further diversifies our platform positions in both the military and
commercial markets, and significantly enhances our position in the
higher-growth markets for composite structures. Most importantly,
Brookhouse brings with it a strong management team and dedicated employees
skilled in aerospace design and manufacturing."
Founded in 1951, Brookhouse generated sales of $54.9 million for the
fiscal year ended September 30, 2007, has approximately 450 employees at
two sites and operates in three businesses units:
-- Composites -- The composites business is an aerostructures company
that has developed a proprietary out of autoclave resin infusion
process for use on two high profile programs with Airbus and Boeing.
Beyond these two platforms, which will help drive additional growth in
this business, the composites business has a diversified customer
base, with components placed on a number of other platforms including
the Airbus A320 family, Airbus A330/340, F-35 (Joint Strike Fighter)
and Eurofighter.
-- Tooling -- The tooling business is a premier designer and manufacturer
of composite molding and assembly tooling for the aerospace industry
and has a diversified customer base throughout Europe. Assembly
tooling is for aircraft structures; airframe and engine handling; and
ground support equipment.
-- After-Market Services -- The after-market services unit is primarily a
supplier to the aerospace industry, in support of British military
platforms. Capabilities include repair, reverse engineering and sheet
metal details and assemblies for platforms such as Tornado, Harrier
and Hawk.
Sales to the military represent slightly more than half of Brookhouse's
sales, with the remainder representing sales to the commercial market.
Sales for OEM's represent approximately two thirds of total sales, with
aftermarket sales representing the remaining third.
Brookhouse's senior management team, including Chief Executive Richard
Thorley, have agreed to continue their employment with Kaman. Brookhouse
will become part of the Company's aerostructures segment.
Mr. Keating, added, "This acquisition is a great fit for Kaman and
supports our strategy of supplementing our organic growth with targeted,
strategic transactions. It expands our presence onto a number of additional
platforms with solid growth prospects. The tooling business adds a
significant capability to our portfolio and a diversified customer base,
and the after-market services business will increase our capabilities in
the higher margin repair and overhaul business. Finally, I am pleased that
Richard and his team have agreed to become part of the Kaman family for the
long-term, and look forward to working with them."
Brookhouse Chief Executive Richard Thorley said, "We are excited to be
joining the Kaman organization. Kaman is an excellent home for Brookhouse
and we look forward to being part of a dynamic forward-looking aerospace
company where their scale and added credibility will support us as we
execute our growth strategy. We envisage significant strategic benefits
from this combination and our employees and seasoned management team are
prepared to capitalize on those benefits."
Additional information about Brookhouse can be obtained from the
company's website at http://www.brookhouse.net.
Kaman Corp., headquartered in Bloomfield, Connecticut, conducts
business in the aerospace and industrial distribution markets.
Forward Looking Statements
This press release includes forward-looking information related to the
company's aerospace business that involves uncertainties that may cause
actual results to differ materially from expectations. These uncertainties
include, but are not limited to, the failure to (i) retain key employees,
(ii) receive customer consents to change in control where contractually
required, (iii) accurately predict the financial contribution of the
acquisition, the costs associated therewith, market acceptance and demand,
(iv) retain current contracts, (v) successfully market services and
products, and (vi) successfully integrate the acquisition. Other factors
that could impact Kaman's operations and results are described under the
heading "Item 1A. Risk Factors" in Kaman's most recent annual report on
Form 10-K, quarterly report on Form 10-Q and other filings with the
Securities and Exchange Commission. Kaman is under no duty to update any of
the forward-looking statements to conform such statements to actual results
or events and does not intend to do so.
SOURCE Kaman Corp.
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Related links:
http://www.kaman.com
http://www.brookhouse.net
http://www.prnewswire.com/comp/480450.html /
CONTACT:
Eric B. Remington, VP, Investor Relations of
Kaman Corp., +1-860-243-6334, eric.remington@kaman.com
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