SALT LAKE CITY (AP) -- Outdoor equipment maker Black Diamond Inc. said Thursday that it reached a deal to buy POC Sweden AB, a designer and manufacturer of safety gear for sports, for up to $56.9 million in cash and stock.
The Swedish company was founded in 2004 and does business in 27 countries. It produces and distributes helmets, body armor, goggles, eyewear, gloves and clothing for sports such as skiing, snowboarding and cycling, Black Diamond said.
For its fiscal year ended April 30, POC's revenue rose about 35 percent to $22.5 million, Black Diamond said.
Black Diamond, based in Salt Lake City, will pay about $40 million in cash, depending on the exchange rate at the time of closing, and 460,000 shares of its common stock, for the company. Based on Black Diamond's Wednesday closing stock price of $9.27, the stock portion of the deal is worth about $4.3 million
Black Diamond also will make estimated additional payments totaling $12.5 million to the company's management over six and a half years if certain performance milestones are met, the company said.
Black Diamond said the deal, which is slated to close in June, is expected to boost its earnings per share in 2013.
Peter Metcalf, Black Diamond's president and chief executive, said POC is one of the most innovative and fastest-growing brands in action sports protective gear and will be a strong addition to the company.
Black Diamond shares rose 40 cents, or 4.3 percent, to $9.67 in afternoon trading.