Sierra Bullets Sold to Clarus Corporation
Sierra Bullets has been acquired by Clarus Corporation (NASDAQ: CLAR) for the sum of $79,000,000, “subject to a post-closing working capital adjustment”. Sierra is one of the world’s leading producers of bullets for hunters, sportsmen, and target shooters. With revenues topping $30,000,000 per year, Sierra has long been a major force in the firearms world. Clarus, formerly Black Diamond Inc., is a Utah-based holding company which “seeks opportunities to acquire and grow businesses that can generate attractive shareholder returns”. Clarus also owns Black Diamond Equipment, Ltd., maker of outdoor equipment/clothing for the climbing, skiing and mountain sports markets.
Read Official Press Release » | Forum Discussion of Sierra Sale »
StreetInsider.com reports: “The transaction is expected to be immediately accretive to Clarus’ earnings per share. For the unaudited 12 months ended June 30, 2017, Sierra’s total revenues were approximately $32 million with EBITDA of approximately $12.5 million, representing a purchase price multiple of approximately 6.3x EBITDA. Sierra has a strong cash flow profile, generating free cash flow conversion of approximately 95% with limited ongoing capex requirements.”
“The team at Sierra has continued building on a 70-year legacy dedicated to the highest-level of precision in design, world-class manufacturing and quality control,” said Warren B. Kanders, executive chairman of Clarus. “These attributes have cultivated a diverse customer base of enthusiasts and industry OEMs that drive high recurring revenue and strong cash flow, which we expect to maximize through the utilization of our net operating loss carry forwards.”
Sierra’s President Pat Daly commented: “Our team takes great pride in developing and manufacturing the most precise and accurate bullets in the world. This is supported by our deep institutional knowledge of highly-specialized manufacturing processes that have produced leading products and created a significant competitive advantage. As the only pure-play bullet brand, it was important for us to partner with a team that shares our values and commitment to excellence, and we are excited to join the Clarus family. I look forward to staying on to continue driving our brand growth.” All senior management are expected to remain with Sierra under Clarus’ ownership.
News Tip from Boyd Allen. We welcome reader submissions.About Sierra Bullets
Founded in 1947 in California, Sierra Bullets is an American manufacturer of bullets. Based in Sedalia, Missouri since 1990, Sierra manufactures a wide range of bullets for both rifles and pistols. Sierra’s product line, recognized by iconic “green box” packaging, includes popular brands such as MatchKing, GameKing, and BlitzKing. Sierra bullets are used for precision target shooting, hunting, and defense purposes. For more information, visit SierraBullets.com.
