Black Diamond has sold POC, its Swedish skiing and cycling accessories brand, to Investcorp, a Bahrain-based manager of alternative investment products. POC was acquired for a total consideration of $65 million, said the company.
Established in 2004 and headquartered in Sweden, POC’s line of products includes helmets, body armor, goggles, eyewear, gloves and other gear, which are currently sold across 27 countries worldwide. The acquisition comes almost a year after Investcorp acquired specialist gear and protection maker Dainese, known in motorcycle and other dynamic sports markets. There are synergies between the two businesses that will be explored in the future, said Investcorp.
Last year, POC reportedly recorded sales of approximately $34.8 million. Black Diamond originally acquired POC in July 2012 for approximately $44.9 million.
Mohammed Al-Shroogi, Investcorp’s Co-CEO, said: “POC is one of the fastest growing, dynamic and innovative companies in the sports gear and protection sectors. Its cross generational reach, intrinsic focus on technical innovation and commitment to safety, make it the perfect fit for our portfolio. Leveraging our sector expertise, experience of working with high quality brands and industry connections, we believe Investcorp is well placed to further support POC’s already impressive growth trajectory.”
As at June 30, 2015, the Investcorp Group had $10.6 billion in total assets under management (AUM), including assets managed by third-party managers where Investcorp receives fees calculated on the basis of AUM.
Black Diamond expects to realize net proceeds of approximately $60 million after purchase price adjustments, fees, expenses and taxes. Post-transaction, the Company expects to have approximately $100 million in cash, $22.6 million in debt and around $167 million in net operating loss carryforwards.
“We would like to thank all of our employees and partners for their work in building POC into one of the most innovative, fastest-growing and hottest brands in the action sports protective gear market,” said Peter Metcalf, CEO of Black Diamond. “We are proud of the reputation POC has built around safety and protection for gravity sport athletes, and are also confident in its bright future under Investcorp’s portfolio, which includes Dainese, the most recognized and respected brand for safety and quality in dynamic sports markets.”
