Clarus Corp., the Utah-based parent of Black Diamond, Sierra Bullets and Pieps, among others, has reported a definitive agreement to acquire Rhino-Rack Pty, an Australian-based manufacturer and distributor of roof racks, mounting systems, luggage boxes, carriers and other automotive accessories, for a total purchase price of around 255 million Australian dollars (€162m-$198m) in cash and shares. That would imply a multiple of just under 12 times last year’s adjusted Ebitda of around A$21.5 million (€13.6m-$16.7m) on sales of A$115 million (€73m-$90m). In addition, an earn-out of A$10 million (€6.3m-$7.7m) is payable in cash on July 31, 2022, contingent upon the achievement of a specified revenue target. Clarus expects the cash payment to be funded by an increase in the company’s existing credit facility led by J.P. Morgan. With 2.5 million shares, Richard Cropley, Rhino-Rack’s chief executive who founded the company in 1992, would become one of Clarus’ five largest shareholders once the transaction closes in July, subject to customary conditions. Clarus says the takeover will be immediately accretive. While keeping the management in Sydney, the group plans to help Rhino-Rack to expand in North America, which represents about 20 percent of its sales. The balance comes from a loyal customer base in Australia and New Zealand. Clarus plans to invest in product innovation, engineering, operations and disruptive marketing to boost its sales.
