Aerospace giant Kaman has agreed to pay $330 million for Bal Seal Engineering, a California-based manufacturer of medical, aerospace and industrial components that operates a plant in Colorado Springs.
Bal Seal employs more than 500 at operations in the U.S., Europe and Asia, but Kaman declined to disclose how many work in the Springs. The 155,000-square-foot plant in the Interquest business park opened in 2014 with plans to employ more than 200 by 2016 to make spring-loaded connectors that carry electric current for pacemakers and other medical devices. The $37.5 million facility can accommodate up to 400 workers.
A Kaman spokesman didn’t respond to a question about whether the Connecticut-based company plans to make changes in Bal Seal’s operations. Kaman CEO Neal Keating said in a news release that Bal Seal’s acquisition will “advance three objectives by expanding the breadth of our product offering, increasing our exposure to high growth markets and driving meaningful near-term margin and cash flow.”
Kaman has operated in the Springs since 1959. Unable to find affordable buildings for his scientists, the company moved its Kaman Nuclear operation to Colorado Springs, becoming the first technology business on Garden of the Gods Road. The operation, later renamed Kaman Sciences, grew to more than 1,200 employees and was acquired by ITT (later acquired by Harris) in 1997. Kaman Fuzing & Precision Products still operates in the Springs.
Bal Seal designs, develops and manufacturers precision springs, seals and contacts used in medical, aerospace and defense and industrial products. The company estimates this year it will generate $26 million in operating profit on $95 million in revenue. Bal Seal opened its first Colorado Springs operation in 2006 in leased space on Garden of the Gods Road before expanding eight years later.
Kaman manufactures aircraft bearings and components; super precision, miniature ball bearings; complex metallic and composite aircraft structures for commercial, military and general aviation; arming devices for missile and bomb systems for the U.S. military and its allies; helicopters and related parts and assemblies. The company last year earned $52.4 million on sales totaling $1.88 billion.
“The combination of Bal Seal and Kaman represents a compelling opportunity for Bal Seal, our employees and all our stakeholders,” Bal Seal CEO Rick Dawson said in the release.
“We look forward to leveraging Kaman’s scale, resources and complementary capabilities to further extend our leadership positions and penetrate new markets with our combined offerings.”
The all-cash deal is subject to approval from U.S. and German regulators and is expected to be completed by year’s end.