Clarus Acquires Sierra Bullets for $79-Million
A Utah based company recently acquired Sierra Bullets, in Sedalia, for $79-million.
According to Clarus Corp, headquartered in Salt Lake City, Utah, the group is a holding company which seeks opportunities to acquire and grow businesses that can generate attractive shareholder returns. The company says its other operating subsidiaries include Black Diamond Equipment, Ltd., and PIEPS GmbH.
"The team at Sierra has continued building on a 70-year legacy dedicated to the highest-level of precision in design, world-class manufacturing and quality control," said Warren B. Kanders, executive chairman of Clarus. "These attributes have cultivated a diverse customer base of enthusiasts and industry OEMs that drive high recurring revenue and strong cash flow, which we expect to maximize through the utilization of our net operating loss carryforwards."
Kanders spoke with KSIS in a telephone interview, saying that Clarus acquired Sierra Bullets on Monday (Aug 21), adding that he met with Sierra employees during a picnic to watch the eclipse. He noted that Sierra Bullets has not changed hands in approximately 50 years.
A press release from Clarus says, the company expects to leverage its various strategic and financial resources to accelerate Sierra's growth, which includes investments to enhance marketing and digital capabilities, improve distribution, forge new customer accounts, and develop new products.
Kanders stated that all of the jobs are intact and nothing is going to change, adding that he has complete confidence in the team at Sierra.
Sierra's President, Pat Daly commented, "Our team takes great pride in developing and manufacturing the most precise and accurate bullets in the world. This is supported by our deep institutional knowledge of highly-specialized manufacturing processes that have produced leading products and created a significant competitive advantage. As the only pure-play bullet brand, it was important for us to partner with a team that shares our values and commitment to excellence, and we are excited to join the Clarus family. I look forward to staying on to continue driving our brand growth."
Kanders said he 'expects to introduce Sierra to Clarus' international distributors and also to help with distribution domestically.'
An updated financial outlook and further discussion on Sierra is expected to be provided during Clarus' third quarter 2017 earnings report.
Sierra Bullets was founded in 1947 in California, and has been based in Sedalia, MO since 1990. Sierra manufactures a wide-range of bullets for both rifles and pistols, which are used for precision target-shooting, hunting, and defense purposes, according to the company's website.