Black Diamond completes sale of Gregory Mountain Products for $84.1 million
Black Diamond Inc. “a leading global supplier of innovative active outdoor performance equipment and apparel,” has completed the sale of its Gregory Mountain Products LLC to Samsonite LLC for $84.1 million. After the completion of sale, Black Diamond paid its debt of approximately $26.7 million to Zions Bank. The company, based in Salt Lake City, UT, now plans to focus its energy toward its central brands, POC and Black Diamond Apparel. According to president and CEO Peter Metcalf, “We believe that we are now positioned for enhanced growth from our core and fastest-growing brands.” For more info, see the press release below.
Press Release, Black Diamond Inc:
Black Diamond, Inc. (Nasdaq:BDE) (the “Company” or “Black Diamond”), a leading global supplier of innovative active outdoor performance equipment and apparel, has completed the asset sale of its Gregory Mountain Products, LLC (“Gregory”) brand for $84.1 million to Samsonite LLC.
The divestiture represents an integral part of Black Diamond’s plan to focus on its core brands, including POC and Black Diamond apparel. Black Diamond has used a portion of the proceeds from the sale to pay down its debt with Zions Bank and plans to reinvest the remainder to support the continued growth and long-term development of its core brands.
“Closing the sale of Gregory marks a critical point in our strategic pivot initiated last fall,” said Peter Metcalf, president and CEO of Black Diamond. “We believe that we are now positioned for enhanced growth from our core and fastest-growing brands.”
The Company has realized net proceeds of approximately $68.4 million after fees, expenses and taxes. The Company previously had approximately $26.7 million of outstanding debt under its credit facility with Zions Bank as of March 31, 2014, which was paid-off in full with the closing of the transaction.
The Company plans to provide revised second half and full year guidance when it reports its second quarter results in August 2014.
Rothschild served as financial advisors and Kane Kessler, P.C. served as legal advisors to Black Diamond for the divestiture.
Black Diamond, Inc. is a global leader in designing, manufacturing and marketing innovative active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing, cycling and a wide range of other year-round outdoor recreation activities. The Company’s principal brands, Black Diamond(R), POC(TM) and PIEPS(TM), are iconic in the active outdoor, ski and cycling industries and linked intrinsically with the modern history of these sports. Black Diamond is
synonymous with performance, innovation, durability and safety that the outdoor and action sport communities rely on and embrace in their active lifestyle. Headquartered in Salt Lake City at the base of the Wasatch Mountains, the Company’s products are created and tested on some of the best alpine peaks, slopes, crags, roads and trails in the world. These close connections to the Black Diamond lifestyle enhance the authenticity of the Company’s brands, inspire product innovation and strengthen customer loyalty. Black Diamond’s products are sold in approximately 50 countries around the world. For additional information, please visit the Company’s websites at www.blackdiamond-inc.com, www.blackdiamondequipment.com, www.pocsports.com or www.pieps.com.