Clarus Corporation, the company based in Salt Lake City, Utah that owns brands such as Black Diamond, Pieps, Sierra Bullets and Rhino-Rack, announced that it intends to offer 2,750,000 shares of common stock and use the net proceeds from the offering for general corporate purposes, including repayment of debt, capital expenditures and potential acquisitions. The company intends to grant the underwriters a 30-day option to purchase up to an additional 412,500 shares of common stock. The group currently has about $190 million in debt on its balance sheet, much of which came from its recent acquisition of Rhino-Rack for $198 million. Earlier this month, Clarus raised its guidance for the full year in the wake of expected strong third-quarter figures, leading the stock price to rise above $30. Clarus has yet to price the offering, but its announcement of the impending dilution sent it down to just over $28. At this level, the net proceeds would amount to less than $100 million if the overallotment option is exercised.

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