June 12, 2008 By Corrie
June 12, 2008, Bloomfield, CT- Kaman Aerospace Group, Inc. has acquired Brookhouse Holdings, Ltd., a leader in the design and manufacture of composite aerostructures, aerospace tooling, and repair and overhaul services based in Darwen, Lancashire, England
June 12, 2008, Bloomfield, CT- Kaman Corp. 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)
-- 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
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 www.brookhouse.net .
Kaman Corp., headquartered in Bloomfield, Connecticut, conducts business
in the aerospace and industrial distribution markets.
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