Clarus Corporation Completes Acquisition of Rhino-Rack

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SALT LAKE CITY, July 01, 2021 (GLOBE NEWSWIRE) – Clarus Corporation (NASDAQ: CLAR) (“Clarus” and / or the “Company”), a global company focused on the outdoor enthusiast and consumer markets, has completed the acquisition of Australia-based Rhino-Rack Pty Ltd (“Rhino-Rack”), a leading manufacturer and distributor of roof racks, trays, mounting systems, luggage compartments, door – high-tech luggage and accessories. Rhino-Rack will continue to operate independently as an indirect wholly owned subsidiary of Clarus and will constitute a third reporting segment.

Clarus acquired Rhino-Rack for AU $ 194 million (approximately US $ 145 million) in cash, subject to a post-closing working capital adjustment, and approximately 2.3 million Clarus common shares for a total purchase price of 273 million Australian dollars. or approximately US $ 207 million based on the AUD / USD exchange rate and the market value of the share price at the close. In addition, a cash earn-out of AU $ 10 million (approximately US $ 8 million) is payable on July 31, 2022, subject to the achievement of a specified revenue target. With the closing, Richard Cropley, founder and CEO of Rhino-Rack, is now one of the top five shareholders of Clarus. Rhino-Rack reported sales of A $ 115 million (approximately US $ 90 million) for the twelve months ended March 31, 2021. The acquisition is immediately accretive to Clarus earnings.

“The closing of the Rhino-Rack acquisition is a major addition to our portfolio of super fan brands,” said John Walbrecht, president of Clarus. “Rhino-Rack is an iconic brand that we believe has a huge avenue of potential growth. We look forward to looking to accelerate the brand’s penetration in North America, while continuing our organic growth in the Company’s core existing markets, Australia and New Zealand. We are already busy deploying our “innovate and accelerate” strategy to seek to grow the brand through product innovation, operational excellence and a clear go-to-market strategy. We are excited to partner with the Rhino-Rack team and continue their legacy of providing outdoor enthusiast customers with superior engineered products.

Warren Kanders, Executive Chairman of Clarus, added: “We are delighted to complete the transaction with the Rhino-Rack team. The strong profitability and cash flow profile of the company should further strengthen our balance sheet capacity as we continue to assess new opportunities for mergers and acquisitions and organic growth.

Clarus plans to update its financial outlook during its next second quarter earnings conference call, which is scheduled to take place in August.

About Clarus Corporation
Headquartered in Salt Lake City, Utah, Clarus Corporation is a leading developer, manufacturer and distributor of premium outdoor equipment and lifestyle products focused on the rock climbing, rock climbing, skiing, mountain and sport. With a solid reputation for innovation, style, quality, design, safety and durability, Clarus’ iconic brand portfolio includes Black Diamond®, Sierra®, Barnes®, PIEPS®, SKINourishment® and Rhino-Rack ® sold through specialty retailers and online. , distributors and original equipment manufacturers in the United States and abroad. For more information, please visit www.claruscorp.com or the brand’s websites at www.blackdiamondequipment.com, www.sierrabullets.com, www.barnesbullets.com, www.pieps.com, or www.rhinorack.com.

About Rhino-Rack
Incorporated in 1992, Rhino-Rack is a global manufacturer of high quality innovative racks, boxes and accessories for a range of vehicles. Constantly innovating and meeting the highest quality standards, Rhino-Rack has built a very strong brand and business model, serving thousands of very loyal and enthusiastic customers around the world.

Forward-looking statements
Please note that in this press release we may use words such as “appear”, “anticipate”, “believes”, “plans”, “expects”, “intention”, “in the future” ”And similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our expectations and beliefs regarding future events affecting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in forward-looking statements. The potential risks and uncertainties that could cause the actual results of operations or the financial condition of the Company to differ materially from those expressed or implied by the forward-looking statements contained in this press release include, without limitation, the overall level of consumer demand for our products; general economic conditions and other factors affecting consumer confidence, preferences and behavior; the disruption and volatility of global currency, capital and credit markets; the financial strength of the Company’s customers; the Company’s ability to implement its business strategy; the Company’s ability to complete and integrate acquisitions; changes in government regulations, legislation or public opinion regarding the manufacture and sale of bullets and ammunition by our Sierra segment, and the possession and use of firearms and ammunition by our customers; the Company’s exposure to product liability or product warranty claims and other contingencies of loss; disruptions and other impacts on the Company’s activities, due to the global COVID-19 pandemic and government actions and restrictive measures implemented in response; the stability of the Company’s manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease outbreaks and health issues such as the global COVID-19 pandemic; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company’s ability to protect patents, trademarks and other intellectual property rights; any breach or interruption of our information systems; the ability of our information technology systems or information security systems to function effectively, including in the wake of security breaches, viruses, hackers, malware, natural disasters, business interruptions of suppliers or other causes; our ability to properly maintain, protect, repair or upgrade our information technology or information security systems, or problems with our transition to upgraded or replacement systems; the impact of negative publicity regarding the Company and / or its brands, including, without limitation, via social media or in connection with events detrimental to the brand and / or public perception; fluctuations in the price, availability and quality of raw materials and products under contract as well as fluctuations in foreign currencies; our ability to use our net operating loss carryforwards; changes in tax laws and responsibilities, tariffs, legal, regulatory, political and economic risks; and the Company’s ability to maintain a quarterly dividend. More information about potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the Securities and Exchange Commission, including the Company’s annual report on the form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. All forward-looking statements included in this press release are based on information available to the Company at the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

Company Contacts:

John C. Walbrecht
President
Tel 1‐801‐993‐1344
[email protected]
or
Aaron J. Kuehne
Executive Vice President and Chief Financial Officer
Tel 1‐801‐993‐1364
[email protected]

Investor Relations Contact:
Investor Relations Gateway
Cody slach
Phone 1‐949‐574‐3860
[email protected]

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