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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.

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.

Risks Associated with Forward-Looking Statements

This release includes "forward looking statements" relating to the acquisition discussed above. These statements include the estimates of the Company's post-transaction leverage and the extent to which the transaction is expected to be accretive to earnings, which are based on assumptions currently believed to be valid but involve risks and uncertainties that could cause our actual results to differ from those expressed in the forward looking statements. Important uncertainties that could cause our actual results to differ from those expressed in the forward looking statements are identified in our reports filed with the SEC, including our Quarterly Reports on Form 10-Q, our Annual Reports on Form 10-K, and our Current Reports on Form 8-K. The forward looking statements included in this press release are made only as of the date of this release, and Kaman does not undertake any obligation to update the forward looking statements to reflect subsequent events or circumstances.

Press release issued by Kaman Aerosystems on December 1, 2015

 

 Contact details from our directory:
Kaman Aerosystems Airframer
GRW Gebr. Reinfurt GmbH & Co. KG

 

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