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BD: Sold!

By ccrossen | May 10, 2010

Rumors and speculation have been bouncing around for the past couple years or so, with many wondering when Peter Metcalf would sell Black Diamond. Today, Clarus Corporation, an OTC firm (CLRS) with zero operations and some cash, announced that it acquired BDEL for $90m. Clarus also purchased Gregory for $45m. Clarus will “take” the combined entity public. The news coincided with Calrus’ Q1 earnings’ release. The purchase will be done with cash and a credit facility provided by Zions.

The big question is really why, other than the obvious, I suppose. In the press release sent out today, Clarus gives BDEL’s annual sales revenue as $86m in 2009. Somebody’s got to cash in after all those years. I have no idea what BD’s profit margin is, but it probably makes for an interesting multiple. As of March 31, 2010, Clarus’ cash, cash equivalents and marketable securities (total assets) were $80.6 million compared to $82.4 million as of December 31, 2009, with 17.4 million shares outstanding.

The newly merged firm will use the name Black Diamond Equipment, Ltd. and will remain based in Black Diamond’s current corporate headquarters in Salt Lake City. Clarus said it expects that the company’s directors and officers will together own approximately 35% of the approximately 21.6 million shares of Clarus common stock outstanding at the closing of the transactions, which is expected to occur in the second quarter of 2010.

Today Clarus’ stock closed up 20%.

Buy your ‘biners now.

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