Salt Lake City-based outdoor sports company Clarus Corp. and its wholly owned affiliate Everest/Sapphire Acquisition LLC have agreed to sell its Precision Sports business segment to Bullseye Acquisitions LLC, an affiliate of JDH Capital Co. of Houston Texas. Clarus’ Precision Sports business is comprised of the company’s Sierra Bullets LLC and Barnes Bullets–Mona LLC subsidiaries.
The sale will be an all-cash transaction worth $175 million and is expected to close this quarter. The deal follows a previous announcement by Clarus that it would review and evaluate the potential sale of the Precision Sport segment.
“After a comprehensive strategic review process, we are pleased to have agreed on a transaction to sell the Precision Sport segment at an attractive price,” said Nicholas Sokolow, lead independent director of the board and chairman of the committee appointed to explore a sale. “After the company received multiple offers for the sale of the Precision Sport segment, the special committee has unanimously concluded after careful deliberation that this transaction is in the best interest of the company’s stockholders.”
Sokolow said the company intends to use the proceeds from the sale to pay down its debt and the remaining funds will be available for general corporate purposes.
Founded in 1957, Clarus Corp. is a global designer, developer, manufacturer and distributor of outdoor equipment and lifestyle products focused on the outdoor and consumer enthusiast markets. The company’s products are principally sold under the Black Diamond, Rhino-Rack, MAXTRAX, TRED Outdoors, Sierra and Barnes brand names through outdoor specialty and online retailers and its own websites.