Black Diamond Sells POC To Investcorp For $65 Million

by Brian Mullin on October 13, 2015

Black Diamond Completes Sale of POC to Investcorp for $65 Million

Black Diamond is selling off POC to Investcorp, which owns the outdoor technical gear companies Helly Hansen, Dainese, and AGV. Black Diamond had bought POC back in June of 2012 and now wants to concentrate on their Black Diamond Equipment and PIEPS brands. The Swedish based POC gravity sport protection company is at the forefront of safety in regard to multiple sports (snow, bike, skateboard) protection, and their helmets are the epitome of their substantial engineering and research prowess.


Press Release

SALT LAKE CITY, Oct. 08, 2015 (GLOBE NEWSWIRE) — Black Diamond, Inc. (NASDAQ:BDE) (the “Company” or “Black Diamond”), a global leader of innovative active outdoor performance equipment and apparel, has completed the sale of its equity interest in POC for $65.0 million, subject to customary purchase price adjustments, to Investcorp, a global provider and manager of alternative investment products.

For the twelve months ended December 31, 2014, POC recorded sales of approximately $34.8 million, implying a revenue multiple of approximately 1.9x. Black Diamond originally acquired POC in July 2012 for approximately $44.9 million.

The divestiture completes the Company’s strategic review process initiated in March 2015. Black Diamond plans to maximize shareholder value by focusing its attention on the profitability of both the Black Diamond Equipment and PIEPS brands while redeploying the proceeds of the sale to potentially unrelated and diversifying investments. The Company will provide a full strategic and financial update on its third quarter earnings call in early November 2015.

Black Diamond expects to realize net proceeds of approximately $60.0 million after purchase price adjustments, fees, expenses and taxes. Post-transaction, the Company expects to have approximately $100.0 million in cash, $22.6 million in debt and around $167.0 million in net operating loss carryforwards.

“We would like to thank all of our employees and partners for their work in building POC into one of the most innovative, fastest-growing and hottest brands in the action sports protective gear market,” said Peter Metcalf, CEO of Black Diamond. “We are proud of the reputation POC has built around safety and protection for gravity sport athletes, and are also confident in its bright future under Investcorp’s portfolio, which includes Dainese, the most recognized and respected brand for safety and quality in dynamic sports markets.”

“We are delighted to be partnering with Investcorp in the next stage of our development,” said Stefan Ytterborn, POC’s founder. “I am confident that with their support we will continue to grow sales, increase penetration into new markets and drive forward innovation, while not deviating from our ultimate mission of doing the best we can to possibly save lives and reduce consequences of accidents for gravity sports athletes and cyclists.”

About Black Diamond, Inc.

Black Diamond, Inc. is a global leader in designing, manufacturing and marketing innovative active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a wide range of other year-round outdoor recreation activities. The Company’s principal brands, Black Diamond® and PIEPS™, are iconic in the active outdoor industry 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.

About Investcorp

Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in Bahrain, New York, London, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the U.S., Europe and the Gulf, real estate investment in the U.S and global hedge funds. As at June 30, 2015, the Investcorp Group had $10.6 billion in total assets under management (“AUM”), including assets managed by third party managers where Investcorp receives fees calculated on the basis of AUM. Further information is available at www.investcorp.com.

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