Newsletter #255 | News
Kaman Completes GRW Bearing Acquisition
Kaman Corporation announced today that its Aerospace segment has acquired GRW Bearing GmbH (GRW), a German-based designer and manufacturer of super precision, miniature ball bearings.
Kaman, November 30, 2015 - BLOOMFIELD, Conn. - Kaman Corporation announced today that its Aerospace segment has acquired GRW Bearing GmbH (GRW), a German-based designer and manufacturer of super precision, miniature ball bearings.
GRW is focused on the demanding applications segment of the miniature ball bearings market, where low noise requirements, extreme temperatures, ultra-high speeds and/or caustic environments require both exceptional engineering design and continuous operating performance capabilities. GRW operates out of two state-of-the-art production facilities in Rimpar, Germany and Prachatice, Czech Republic, and is expected to have sales for the full year 2015 of approximately €48 million (Euros).
Kaman Chairman, President and CEO Neal Keating said, “GRW adds additional scale and new market segments to our most profitable product lines, specialty bearings and engineered products. The businesses are aligned through a focus on solving the critical problems of OEM customers and achieving the highest standards of performance in the most demanding applications. I welcome the GRW team to Kaman.”
“Few companies in the world have the technical capability to design and manufacture miniature bearings capable of achieving performance standards as high as GRW. As with Kaman specialty bearings brands Kamatics and RWG, GRW is focused on developing and manufacturing technology driven products with unsurpassed quality,” stated Gregory Steiner , President, Kaman Aerospace Group. “The acquisition should allow us to drive significant synergies through operational efficiencies and additional sales growth.”
Robert Starr , Executive Vice President and CFO, added, “Even before synergies, at an approximate purchase price multiple of 13 times expected 2015 EBITDA1 the acquisition of GRW is expected to be accretive to earnings per share in 2016, excluding transaction and integration costs. After funding this transaction, on a pro-forma basis we expect to end 2015 well within our long-term target range for leverage of two to three times EBITDA.”
The purchase price was approximately €135.2 million (Euros)2, net of cash acquired, and was funded through borrowings under the company’s revolving credit facility.
Citizens Bank, N. A. acted as financial advisor to Kaman for this transaction.
1 The purchase price multiple excludes from GRW’s 2015 2015 EBITDA approximately €1.3 million (Euros) of transaction related costs and expenses to be paid by GRW.
2 The acquisition purchase price is calculated using the gross purchase price per the Share Purchase Agreement of €138.8 million (Euros), plus transaction related costs and expenses to be paid by GRW of €1.3 million (Euros), less estimated cash acquired of approximately €4.9 million (Euros), which is subject to verification and adjustments.
About Kaman Corporation: Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman , and headquartered in Bloomfield, Connecticut conducts business in the aerospace and industrial distribution markets. The company produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; aerostructure engineering design analysis and FAA certification services; safe and arm solutions for missile and bomb systems for the U.S. and allied militaries; design and supply of aftermarket parts to MRO aerospace markets; K-MAX® medium to heavy lift helicopters; and support for the company's SH-2G Super Seasprite maritime helicopters and K-MAX® aircraft. The company is a leading distributor of industrial parts, and operates more than 200 customer service centers and five distribution centers across the U.S. and Puerto Rico. Kaman offers more than four million items including bearings, mechanical power transmission, electrical, material handling, motion control, fluid power, automation and MRO supplies to customers in virtually every industry. Additionally, Kaman provides engineering, design and support for automation, electrical, linear, hydraulic and pneumatic systems as well as belting and rubber fabrication, customized mechanical services, hose assemblies, repair, fluid analysis and motor management.
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