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SALT LAKE CITY - Clarus Corporation (NASDAQ:CLAR), a $140 million market cap outdoor equipment company, announced Monday it has completed the previously disclosed sale of its PIEPS brand and JetForce avalanche pack intellectual property assets to a private investment firm for approximately $9.1 million (€7.8 million), comprising both cash and debt.
The transaction aligns with the outdoor equipment company’s strategy to streamline operations and refine its product portfolio.
"The divestiture of PIEPS reflects our continued focus on simplifying the business and rationalizing our product categories," said Warren B. Kanders, Clarus’ Executive Chairman, in a press release statement.
The sale follows what the company described as a comprehensive strategic review process. Clarus indicated the transaction will strengthen its balance sheet and support long-term growth initiatives.
Clarus Corporation, headquartered in Salt Lake City, Utah, designs and develops equipment for outdoor enthusiasts. The company’s remaining brand portfolio includes Black Diamond, Rhino-Rack, MAXTRAX, and TRED Outdoors, which are sold through specialty retailers, online channels, and distributors globally.
The company did not disclose specific plans for the use of proceeds from the transaction.
In other recent news, Clarus Corporation reported its first-quarter 2025 financial results, revealing a 13% decline in net sales year-over-year, with revenues of $60.4 million, which fell short of the $76.19 million forecast by analysts. The company also reported an adjusted EBITDA of -$800,000, with a negative margin of 1.3%. Due to market uncertainties, Clarus has withdrawn its full-year 2025 guidance, citing challenges such as US trade policies and tariffs impacting their operations. In addition to financial results, Clarus announced changes following its annual stockholders meeting, including the election of five directors and an update to its stock incentive plan, which now limits the number of shares available and extends the plan’s term to ten years. Furthermore, Executive Chairman Warren B. Kanders received approval to increase his beneficial ownership to approximately 32.9% of the company’s outstanding shares. The company is also accelerating its exit from China manufacturing to mitigate the risks associated with tariffs. Clarus has entered into an agreement to divest its PEEP Snow Safety brand for EUR 7.8 million, aligning with its strategy to simplify the business. Despite the revenue decline, Clarus is focusing on strategic initiatives, including the launch of a new e-commerce site and a flagship store in Seattle, to strengthen its market position.
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