Parties show ‘interest’ in separately acquiring Black Diamond (plus Pieps) and Poc; deals could come by 3Q

The company continues explore options with financial advisers Rothschild Inc. and Robert W. Baird and Co.
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Black Diamond Inc. (NYSE:BDE) CEO Peter Metcalf recently told investors that the company continues to work with financial advisory firms Rothschild Inc. and Robert W. Baird and Co. to explore “a full range of strategic alternatives, including the sale of the company's Black Diamond Equipment (and Pieps) and Poc brands in two separate transactions.”

Black Diamond put its brands on the market on March 16 and Monday’s comments were the first to suggest that the company is looking to sell off BD and Pieps as one unit and Poc as another.

“The company has received a number of non binding indications of interest with respect to each of these brands,” Metcalf said on May 11. “We anticipate that the results of the strategic review process will be known during the third quarter 2015.” He added that there’s no assurance that the end-process will result in any sale.

Metcalf made the comments during the company’s 2015 first quarter earnings report, where it reported sales of $50.3 million, up 13 percent on an organic basis, minus its recently sold Gregory brand. Officials said strength came from all product categories, with specific highlights from Black Diamond apparel and Poc’s cycling product.

First-quarter net loss for the company came in at $1.7 million, an improvement versus a net loss of $3.4 million a year ago.

As of March 31, 2015, Black Diamond reported $36.8 million in cash and $22 million in debt.

Looking ahead, officials kept their previous projections with annual sales of $208 million, which would represent approximately 8 percent in organic growth (minus the Gregory sale) from 2014.

--David Clucas

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