Black Diamond To Sell Gregory Mountain Products To Samsonite LLC For $85 Mln

(RTTNews) - Black Diamond Inc.(BDE), a supplier of active outdoor performance equipment and apparel, said that it has signed a definitive asset purchase agreement to sell its Gregory Mountain Products, LLC brand for $85 million to Samsonite LLC. The transaction is subject to customary closing conditions and expected to close in late July 2014.

For the twelve-month periods ended December 31, 2012 and 2013, Gregory recorded total sales of $30.6 million and $34.9 million, respectively.

The company expects to realize net proceeds of about $69.2 million after fees, expenses and taxes. The Company had approximately $26.7 million of outstanding debt under its credit facility with Zions Bank as of March 31, 2014 which it expects to repay upon the closing of the transaction.

Assuming the transaction closes as anticipated, the Company expects to provide revised second half and full year guidance when it reports its second quarter results in August 2014.