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Avalanche Transceiver Technology Founder and Market Leader
PIEPS Strengthens Black Diamond's Portfolio of Life-Dependent ProductsManagement to Discuss Acquisition via Conference Call After the Expected Close on Monday, October 1 at 4:30 p.m. ET
SALT LAKE CITY, Sept. 24, 2012 (GLOBE NEWSWIRE) -- Black Diamond, Inc. (Nasdaq:BDE) (the "Company" or "Black Diamond") 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.
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.
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.
"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."