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Black Diamond to buy POC Sweden

Published June 7, 2012

SALT LAKE CITY, UT (BRAIN) Thursday June 7 2012 12:30 PM MT—Outdoor supplier Black Diamond has agreed to buy POC Sweden, a protective gear manufacturer whose product line includes bike helmets.

Under the terms of the agreement, Black Diamond will purchase POC for 311 million Swedish kronor (approximately $43.5 million). At closing, Black Diamond will deliver approximately 460,000 shares of BDE common stock and approximately $40.0 million in cash depending upon the currency exchange rate at closing.

For its fiscal year that ended April 30 POC's unaudited total revenues were approximately $22.5 million, an increase of approximately 35 percent over the prior year.

Black Diamond has committed an additional estimated $12.5 million payable in a series of incentives payable to management over a six and a half year period.

"POC and Black Diamond were both founded as solutions-based companies, focused on providing unmatched personal protection for active outdoor athletes," said Peter Metcalf, president and CEO of Black Diamond.

"We believe POC is one of the most innovative, fastest-growing and hottest brands in action sports protective gear today and a strong strategic addition to the Black Diamond platform."

Black Diamond, Inc., headquartered in Salt Lake City, is traded on NASDAQ under the BDE symbol. It reported revenues of $145 million last year.

Topics associated with this article: Mergers & Acquisitions

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