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fitzontherocks
May 10, 2010, 5:52 PM
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Isn't Black Diamond employee-owned? Wonder how employees feel about this.
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acorneau
May 10, 2010, 5:58 PM
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cracklover wrote: In reply to: Under the terms of the agreements, Clarus will pay $90 million in cash for Black Diamond, subject to adjustments Interesting news! GO For sure. Wonder what part of BD is going to suffer, as something always does in this kind of purchase/merger.
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majid_sabet
May 10, 2010, 6:02 PM
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Great news for one more American company to operate in China so you dirtbaggers in Utah will be filling unemployment soon.
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acorneau
May 10, 2010, 6:02 PM
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On BD's website:
In reply to: Dear Black Diamond Employees, Friends and Colleagues: This is a milestone day for Black Diamond. When we founded this company, we wanted to build great products to maximize the enjoyment and safety of the sports we love so much. More, we wanted to build a company that reflected, respected, and championed our lifestyle and values as climbers & off-piste skiers. Though you never arrive at your destination, we are proud of what we have accomplished and the style in which that has been achieved. Together, we have built a truly special, global company and I would like to take this moment to express my most heartfelt thanks all of the employees, friends, customers, vendors, and consumers that have helped us along the way. Authenticity is a word that gets thrown around a lot. For it to actually mean something, which it does at Black Diamond, we live and breathe the sports we represent and reflect that in our business practices. We approach business like we do climbing. As you can appreciate, there is precious little room for error in either. When we climb, we learn to make careful choices, act as a team, proceed purposefully, realistically assess risk, and ensure that we are protected against it. At the same time, we know how to maintain focus and, when necessary, to act decisively and aggressively to make progress. We constantly adapt to the route in front of us. That we approach our business the same way is no accident. Today, we have a new route and new summit to tackle. I am incredibly pleased to announce that Black Diamond is entering into a transaction with Clarus Corporation that will simultaneously make us a public company and merge the operations of Gregory Mountain Products with Black Diamond. Gregory is a great brand and business that I’m sure you are also familiar with. The rest of the executive team at Black Diamond and I will continue our roles, but with the added challenge and responsibility of growing the business as a public company. For nearly 30 years I have led the growth of this company and it’s predecessor from a sub $1million/year business to one that continues to grow at a double digit rate, surpassed $92million in annual revenue in the past 12 months, and has double digit growth in Fall’10 bookings. Over those nearly 30 years the mantra has been to build a beautiful and respected “built to last company”. As of 2010 we have achieved nearly every component of that approach other than the capital structure and the backstop for management, especially myself. With this deal, the last pieces of that global, built to last, foundation are being put into place. We are all really excited for that. Clarus Corporation is a public company with no operations but strong financial resources. They have been searching for a long time for the right business to help build and we feel most fortunate to have connected with one another. After the deal closes, which should be sometime in June, Clarus expects to change its name to Black Diamond Equipment. The managers of Clarus and owners of Gregory, Warren Kanders and Rob Schiller, will provide us with guidance and financial support. Their track record is outstanding. Most recently, they built and operated Armor Holdings, a company that designed and built a wide variety of personal protection and safety equipment. What is not changing? Our commitment to our mission, vision and values, and our efforts to help write the stories of the sports and the communities which inspire us . This shared passion is the universal Esperanto that connects us with fellow climbers & skiers no matter where we are. We view this new route in front of us as not only a method to growth, but as a collaborative effort through which we will strengthen and expand the way we do business and our community of fellow users. For those of you who have been around awhile this is not the first time we have stood in front of you and spoken about big change. In November 1989 we spoke about our vision for a future together and a business model driven by the ethos of our sports, lifestyles and culture. We would like to believe that the last few decades have validated that vision and our commitment to it. Looking forward at yet another clean undone line, BD remains more committed then ever to that vision. We understand that the future will be the only arbitrator and that talk at this point is just that, talk. You should have been here yesterday is now you NEED to be here tomorrow. Let the future be our judge. Peter Metcalf CEO / President & Co-Founder
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agdavis
May 10, 2010, 6:04 PM
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fitzontherocks wrote: Isn't Black Diamond employee-owned? Wonder how employees feel about this. If Black Diamond were truly employee-owned, then they were obviously fine with it. Companies that say they are employee-owned because they give them a tiny bit of stock options don't give employees say, and I highly doubt that the employees actually think they own a significant piece of the company.
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fitzontherocks
May 10, 2010, 6:23 PM
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I hear you; I previously worked at an ESOP company. Aside from a decent retirement plan, I had little to no say in the way things were run (and I'm not there now-- you can connect the dots). I'm just curious what the general sentiment is. They could be loving it, or they could hate it. Metcalf is a founder and seems like he'd want to do right by his people. This letter is on the BD site right now: http://www.blackdiamondequipment.com/en-us/about-us/company
(This post was edited by fitzontherocks on May 10, 2010, 6:25 PM)
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summerprophet
May 10, 2010, 6:42 PM
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Hmmmm, I guess that is the end of the BD Backpack line..... Much in the same way Dana Packs dissapeared when sold to Marmot.
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moose_droppings
May 10, 2010, 6:59 PM
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Will all the warranties on the many, many BD products I own still be honored?
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devkrev
May 10, 2010, 7:37 PM
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summerprophet wrote: Hmmmm, I guess that is the end of the BD Backpack line..... Much in the same way Dana Packs dissapeared when sold to Marmot. Its probably the end of well-made, well-designed products. A privately held company can focus on doing what it does well. A publicly held company must concern itself with "returning shareholder value" Quality will suffer in the quest for a fat bottom line. dev
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climbist
May 10, 2010, 7:57 PM
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Quote from Clarus Corp. "Based in Stamford, CT, Clarus Corporation is executing an asset redeployment strategy utilizing its cash resources to merge with an operating business or businesses that will serve as a platform company." ...
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marc801
May 10, 2010, 8:09 PM
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devkrev wrote: A privately held company can focus on doing what it does well. A publicly held company must concern itself with "returning shareholder value" Don't delude yourself. A privately held company is just as concerned and has just as much focus on "returning shareholder value" as a publicly held company. The difference is that shareholders are a much smaller group - usually called investors, which can often be a venture capital firm - and that their finances do not have to be disclosed publicly.
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devkrev
May 10, 2010, 8:38 PM
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marc801 wrote: devkrev wrote: A privately held company can focus on doing what it does well. A publicly held company must concern itself with "returning shareholder value" Don't delude yourself. A privately held company is just as concerned and has just as much focus on "returning shareholder value" as a publicly held company. The difference is that shareholders are a much smaller group - usually called investors, which can often be a venture capital firm - and that their finances do not have to be disclosed publicly. If a publicly held company is so much the same as a private....
Peter Metcalf wrote: but with the added challenge and responsibility of growing the business as a public company. why did he have to mention that? I hope Black Diamond sticks to their guns. But when they are bought by a company whose business used to be "e-commerce" up until that bubble burst, I'm slightly concerned. Stamford, Connecticut is definitely a world-class climbing/skiing destination. So I'm sure Clarus knows all about BD's business. dev
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climbist
May 10, 2010, 9:46 PM
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In reply to: I hope Black Diamond sticks to their guns. But when they are bought by a company whose business used to be "e-commerce" up until that bubble burst, I'm slightly concerned. Stamford, Connecticut is definitely a world-class climbing/skiing destination. So I'm sure Clarus knows all about BD's business. dev exactly what I was thinking...
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evanwish
May 10, 2010, 9:56 PM
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Thats a surprise, but luckily they are keeping the name Black Diamond Equipment. Maybe if we're lucky Clarus Corperation will buy CCH too!
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Gmburns2000
May 10, 2010, 10:30 PM
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devkrev wrote: Stamford, Connecticut is definitely a world-class climbing/skiing destination. So I'm sure Clarus knows all about BD's business. dev I may have read the press release wrong, but I was under the impression that the BD executives were maintaining their positions and that the headquarters for all companies were being moved to Salt Lake (i.e. - this is more of BD taking someone else's money and keeping things the same as opposed to someone else buying BD and changing things).
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marc801
May 10, 2010, 10:30 PM
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climbist wrote: In reply to: Stamford, Connecticut is definitely a world-class climbing/skiing destination. So I'm sure Clarus knows all about BD's business. dev exactly what I was thinking... Clarus doesn't have to know a thing about BD's business, since they decided Pete Metcalf would continue as CEO of the combined entity. Metcalf's responsibility now is to make sure his P&L matches or exceeds what was agreed to with Clarus. Just like Backcountry.com's relationship with their owner, Liberty Media.
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dudemanbu
May 10, 2010, 10:33 PM
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devkrev wrote: Stamford, Connecticut is definitely a world-class climbing/skiing destination. So I'm sure Clarus knows all about BD's business. dev Go Vertical Stamford was the creme de la creme of Connecticut Climbing Gyms.. until it went belly up.
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marc801
May 10, 2010, 10:35 PM
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devkrev wrote: If a publicly held company is so much the same as a private.... Peter Metcalf wrote: but with the added challenge and responsibility of growing the business as a public company. why did he have to mention that? Because it's much harder to do so when under the scrutiny of the market, SEC, and Wall St. analysts, who have earnings expectations based on the projections and estimates publically given by the company. That doesn't mean those same expectations and profit focus weren't there under private ownership.
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devkrev
May 11, 2010, 12:09 AM
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marc801 wrote: climbist wrote: In reply to: Stamford, Connecticut is definitely a world-class climbing/skiing destination. So I'm sure Clarus knows all about BD's business. dev exactly what I was thinking... Clarus doesn't have to know a thing about BD's business, since they decided Pete Metcalf would continue as CEO of the combined entity. Metcalf's responsibility now is to make sure his P&L matches or exceeds what was agreed to with Clarus. Just like Backcountry.com's relationship with their owner, Liberty Media. And if the P&L doesn't match expectations? What kind of cost saving measures will Clarus expect(demand)? dev
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Alpinisto
May 11, 2010, 12:37 AM
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devkrev wrote: And if the P&L doesn't match expectations? What kind of cost saving measures will Clarus expect(demand)? Hotwires made from recycled PBR canz. Oh, wait...we're talking Black Diamond, not Patagonia. Never mind.
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JohnF
May 11, 2010, 2:07 AM
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moose_droppings wrote: Will all the warranties on the many, many BD products I own still be honored? Of course. When you buy a company you get its liabilities along with its assets.
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guangzhou
May 11, 2010, 2:31 AM
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majid_sabet wrote: Great news for one more American company to operate in China so you dirtbaggers in Utah will be filling unemployment soon. BD has operated in China for quite some time. They actually had enough China based contractors they they went in a created a compound to steam line it's China operations and distribution. Visit BD Asia. I for one think it;s a plus. All along, they maintain a small part of it's operation In Salt Lake and Switzerland too. I for one will be investing when this goes public. Both companies have strong finances and a good name. I think this will also help BD with some more financing in the R&D department. I do agree, the BD and Gregory packs will be harvested into one brand, but both made good packs in their lines. I am guessing you'll get a strong line of packs using the best innovation of both companies. I for one think this is a great move. I'll be investing in the company to show my support. Eman
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marc801
May 11, 2010, 6:01 AM
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devkrev wrote: marc801 wrote: climbist wrote: In reply to: Stamford, Connecticut is definitely a world-class climbing/skiing destination. So I'm sure Clarus knows all about BD's business. dev exactly what I was thinking... Clarus doesn't have to know a thing about BD's business, since they decided Pete Metcalf would continue as CEO of the combined entity. Metcalf's responsibility now is to make sure his P&L matches or exceeds what was agreed to with Clarus. Just like Backcountry.com's relationship with their owner, Liberty Media. And if the P&L doesn't match expectations? What kind of cost saving measures will Clarus expect(demand)? Probably about the same as the investors would expect when BD was privately held. That was your entire point - that somehow this will significantly change the way BD operates. In some ways, yes, but in the areas you were concerned about - product quality and innovation - pretty unlikely. If anything, it may seriously help in innovation and product R&D.
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