Black Diamond to Acquire PIEPS GmbH

Black Diamond, Inc. has entered into a definitive agreement to acquire PIEPS Holding GmbH and its operating subsidiary, Pieps GmbH, a leading Austrian designer and marketer of avalanche beacons and snow safety products.
Author:
Updated:
Original:

Black Diamond, Inc. (NASDAQ: BDE) has entered into a definitive agreement to acquire PIEPS Holding GmbH and its operating subsidiary, PIEPS GmbH (together “PIEPS”), a leading Austrian designer and marketer of avalanche beacons and snow safety products, from the SEIDEL Group, a family-owned group of companies focused on electronics manufacturing.

“Black Diamond’s acquisition of PIEPS reflects our ongoing strategy to assemble the best and brightest global companies that lead the charge in creating safer travel and backcountry adventure experiences,” said Peter Metcalf, president and CEO of Black Diamond. “Like Black Diamond Equipment, PIEPS is widely recognized among backcountry enthusiasts for its electronic innovation, premium quality, product reliability and practicality. This reputation has translated into their position as one of the global leaders in avalanche transceivers and has given PIEPS a leading market share in its core markets of Germany and Austria.

Founded in 2006, with roots dating back to 1972, PIEPS is widely recognized as an innovator and technology leader in alpine safety equipment. PIEPS offers a focused range of premium alpine performance products, including avalanche transceivers and probes, shovels, safety equipment, packs, and satellite-based devices for messaging, route tracking, and navigation. PIEPS is the only authorized European Iridium satellite network partner within the alpine sport and outdoor sectors.

PIEPS’ CEO Michael Schober commented: “The joint power of Black Diamond’s global operational resources and PIEPS’ leading alpine search and rescue technology creates a powerful platform for further product development. We believe that Black Diamond’s existing and planned electronic products will be supported with our extensive technical experience developing and manufacturing avalanche beacons and other electronic devices. In Black Diamond, we are confident that we have found our ideal match to cultivate our brand and look forward to continue delivering premium alpine performance products.”

For its fiscal year ended March 31, 2012, PIEPS’ sales were €6.0 million or approximately $8.2 million.

Under the terms of a definitive agreement, Black Diamond will purchase PIEPS for €8.0 million or approximately $10.4 million in cash and will also assume approximately €2.1 million or $2.7 million in debt. Black Diamond has committed up to an additional estimated €2.3 million or approximately $3.0 million of contingent purchase price upon PIEPS’ achievement of certain sales targets between the closing of the transaction and March 31, 2015.

The transaction is expected to close on October 1, 2012 and is expected to be immediately accretive to Black Diamond earnings per share.

“PIEPS will be run as a semi-autonomous, discrete but closely linked Black Diamond brand that we believe will benefit directly from our operational infrastructure that is similarly tailored to highly engineered, life-dependent products,” continued Metcalf. “We also expect to grow PIEPS’ sales in those markets and geographies covered by Black Diamond’s global distribution platform. PIEPS has historically generated higher gross margin than a typical hard goods company and we expect that to have a positive impact on our overall average gross margin. PIEPS intellectual property, specifically its avalanche technology—including their paradigm-changing Global Finder—supports Black Diamond’s continuing focus on developing our electronic technology and applications product portfolio. We believe that all of these factors make PIEPS an ideal acquisition for Black Diamond as we advance our strategy to become the world’s most respected outdoor equipment and lifestyle company.”

Black Diamond Europe Managing Director, Christian Jaeggi observed, “In Europe the combination of Black Diamond with its highly respected, responsive, and centralized dealer services operation with the avalanche safety and transceiver leadership embodied in Pieps creates a truly synergistic opportunity that we believe will benefit not only both companies but retailers and consumers alike.”

All PIEPS products are designed and developed in its state-of-the-art facilities and are the result of close collaboration with top mountain guides and rescue teams, scientists and alpine security specialists, as well as major universities in Austria and Switzerland, such as the Institute for Snow and Avalanche Research. PIEPS electronic products will continue to be manufactured by SEIDEL Elektronik, another member of the SEIDEL Group and a contract manufacturer of electronic products for over 15 years.

Renowned for its technological innovation, PIEPS is the recipient of many prestigious industry awards, including Gear of the Show at the summer 2012 Outdoor Retailer and the ISPO Outdoor Award in 2011. It also holds the distinctive ISO (International Organization for Standardization) 9001 certification which defines the standard for quality management systems.

About PIEPS GmbH

PIEPS GmbH is the founder of avalanche transceiver technology, and a market and technology leader with more than 40 years of experience in alpine safety products. PIEPS offers the full range of premium alpine performance products, including avalanche transceivers, avalanche probes, shovels, safety equipment, backpacks and bags, as well as functional sportswear. Headquartered in Lebring, Steiermark, Austria, all PIEPS products are developed and designed internally with state-of-the-art technology and the highest demands on practical functionality. For additional information, please visit www.pieps.com.

About Black Diamond, Inc.

Black Diamond, Inc. is a global leader in the design, manufacturing and marketing of innovative active outdoor performance products for climbing, mountaineering, backpacking, skiing, cycling and other outdoor recreation activities for a wide range of year-round use. The Company's principal brands, Black Diamond®, Gregory™ and POC™, are iconic in the active outdoor industry and linked intrinsically with the modern history of these sports. Black Diamond is synonymous with performance, innovation, durability and safety that the outdoor and action sport communities rely on and embrace in their active lifestyle. Headquartered in Salt Lake City at the base of the Wasatch Mountains, the Company's products are created and tested on some of the best alpine peaks, slopes, crags, roads and trails in the world. These close connections to the Black Diamond lifestyle enhance the authenticity of the Company's brands, inspire product innovation and strengthen customer loyalty. The Company's products are sold by leading specialty retailers in the U.S. and 50 countries around the world. For additional information, please visit the Company's websites at www.blackdiamond-inc.com, www.blackdiamondequipment.com, www.gregorypacks.com, or www.pocsports.com.

Related

Black Diamond Completes Acquisition of PIEPS GmbH

Black Diamond, Inc. (NASDAQ: BDE) has successfully completed the acquisition of PIEPS Holding GmbH and its operating subsidiary, PIEPS GmbH (together “PIEPS”), a leading Austrian designer and marketer of avalanche beacons and snow safety products, from the SEIDEL Group, a ...read more

BlackDiamondPiepsLogo.jpg

Black Diamond to acquire winter safety brand Pieps for $10.4 million

Black Diamond Inc. continued in its acquisition mode, announcing plans Monday to acquire Austria-based Pieps, best known for its avalanche transceivers, probes and other winter safety gear. “It’s an iconic company when you think of the history of avalanche transceivers,” ...read more

Black Diamond Equipment to Acquire POC Sweden AB

Black Diamond, Inc. (NASDAQ: BDE) (the “Company” or “Black Diamond”) announced that it has entered into a definitive agreement to acquire POC Sweden AB (“POC”), a Stockholm-based designer and manufacturer of protective gear for action sports athletes. Founded in 2004, POC ...read more

Black Diamond Completes Acquisition of POC Sweden AB

Black Diamond, Inc. (NASDAQ: BDE) (the “Company” or “Black Diamond”) has successfully completed the acquisition of POC Sweden AB (“POC”), a Stockholm-based developer and manufacturer of protective gear for action sports athletes. Under the terms of the definitive purchase ...read more

Black Diamond to Acquire Gregory’s Japanese Distribution Assets

Black Diamond, Inc. (NASDAQ: BDE) (the “Company” or “Black Diamond”), a leading global provider of outdoor recreation equipment and active lifestyle products, has signed a definitive agreement to acquire the Japanese distribution assets of Gregory Mountain Products ...read more

Black Diamond Equipment Earns Top Honors for 2012

Black Diamond Equipment, Ltd., a leading global innovator in climbing, skiing and mountain sports equipment, announces a series of recent accomplishments and product awards for forthcoming 2012 offerings. “Our R&D process, lab time and field testing continues to benefit BD in ...read more

Black Diamond Hosts 16th Annual Utah Avalanche Center (UAC) Fundraiser

Black Diamond Equipment Ltd., Mountain Gear, Uinta Brewing Company and the Friends of the Utah Avalanche Center invite you to an evening of music, dancing and Mexican food to benefit the Utah Avalanche Center. The festivities are set for next Thursday, September 17, 2009, at ...read more

Black Diamond Primed With Awards and New Product for ORWM

Black Diamond Equipment, a leading global innovator in climbing, skiing and mountain sports equipment, charges into this week’s Outdoor Retailer Winter Market with revolutionary new designs that support its mission to make the world’s best, most trustworthy gear for climbers, ...read more

681302_halo28_jetforce_fred_handle

Black Diamond Equipment Introduces Fall 2014 Collection

Black Diamond Equipment®, a global innovator in climbing, skiing and mountain sports equipment, will showcase a Fall 2014 Collection at the Outdoor Retailer Winter Market. The 2014 line reflects Black Diamond’s expertise as a community of users and makers dedicated to the ...read more