Closely held Black Diamond, Inc. began offering 7.75 million additional shares of its common stock at $7.50 a share in a public offering managed by Piper Jaffray & Co. as sole book runner and Wm Smith & Co. as co-manager.

While market conditions will dictate the size of the offer, only 21.7 million of 100 million shares of common stock authorized by BDE are currently outstanding. As of Feb. 14, 39 percent of the company’s outstanding stock was controlled by insiders, including Warren Kanders, executive chairman of the board of directors, who controled 29.3 percent. 

Proceeds from the sale will also be used for general corporate purposes, including paying down debt and capital expenditures and potential acquisitions. BDE has said it specifically plans to use proceeds to pay down a nearly $25 million balance on a line of credit with Zion Bank. 

Black Diamond reported sales of $125 million in 2010 and expects to add $250 million in sales annually by 2015 through acquisitions and another $250 million annually by 2020 through sales of apparel, which it will launch in the fall of 2013. The company has said it is in talks with several acquisition targets in the outdoor recreation space with annual sales in the $25-$50 million range.

“The fragmented active outdoor industry is in part comprised of numerous, small-scale entrepreneurial brands presenting a significant opportunity for consolidation,” reads the prospectus the company filed Wednesday for the offering. “We believe we are viewed as an acquiror of choice in the space due to our brand heritage as well as the benefits we can provide to potential targets through our global operating platform. We will target acquisitions that will enable us to gain access to new product categories, geographies and channels and increase our penetration of existing markets. We have identified a number of potential targets that include tuck-ins, brand acquisitions and strategic targets that we believe represent a sales growth opportunity of approximately $250 million by 2015. We believe our management’s experience in identifying attractive acquisition targets, our proven integration process and our global infrastructure creates a strong platform for future acquisitions.”