Clarus Corp. entered into a definitive purchase and sale agreement to sell its Precision Sport segment, comprised of Sierra Bullets and Barnes Bullets, to a U.S.-based non-strategic buyer not affiliated with the company or any of its officers or members of its board of directors in an all-cash transaction for $175 million at closing.

The purchase is subject to a customary working capital adjustment. Claurus Corp. did not identify the non-strategic buyer.

The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals.

In September, Warren Kanders, Clarus’ largest shareholder, submitted a non-binding bid to acquire the company’s Precision Sports segment for $160 million. Clarus formed a special committee of its Board to explore the sale and, in early October, retained Houlihan Lokey as a financial adviser.

In a statement on December 29, Clarus said the entry into the agreement marked the conclusion of the company’s previously announced process for reviewing and evaluating the potential sale of the Precision Sport segment in response to Kanders’ offer.

“After a comprehensive strategic review process, we are pleased to have agreed on a transaction to sell the Precision Sport segment at an attractive price,” said Nicholas Sokolow, lead independent director of the Board and chairman of the Special Committee. He continued, “After they received multiple offers for the sale of the Precision Sport segment, the Special Committee has unanimously concluded after careful deliberation that this transaction is in the best interest of the stockholders.”

The company reported it intends to use the proceeds from the sale to pay down its debt, and the remaining funds will be available for general corporate purposes.

Kane Kessler, P.C. is acting as legal advisor in the transaction, Richards, Layton & Finger, P.A. is acting as legal advisor to the Special Committee and Houlihan Lokey Capital, Inc. is acting as financial advisor to the Special Committee.

The other brands under the Clarus Corp. umbrella include Black Diamond, Rhino-Rack, Maxtrax and Tred Outdoors.

Image courtesy Barnes Bullets