Clarus Corporation Sells Precision Sport Division for $175M

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Clarus Corporation ($NASDAQ:CLAR), a publicly traded company, has announced the sale of its Precision Sport Division for $175 million. The proceeds from the sale will be used to further Clarus’ strategic objectives in order to strengthen its core business. Clarus Corporation is a global provider of innovative outdoor lifestyle products that meet the needs of a variety of outdoor enthusiasts. The company designs, develops, manufactures, and distributes a variety of products that include apparel, footwear, backpacks, and camping gear.

This transaction marks an important milestone in Clarus’ long-term growth strategy. The sale of Precision Sport Division will enable Clarus to focus on its core competencies, allowing it to better serve its customers with higher-quality products and more innovative solutions. Going forward, Clarus will continue to explore avenues for expanding its outdoor lifestyle product offerings and cultivating relationships with industry partners.

Market Price

On Friday, CLARUS CORPORATION, a global leader in precision sport equipment, announced that it has sold its Precision Sport Division for $175M. This news caused the company’s stock to open at $6.5 and close at $6.9, representing a 6.9% rise from the previous closing price of 6.4. The company stated that the sale of this division was part of their plan to refocus their business operations on other areas. The sale was completed in a single day, making it one of the most successful divestitures for the company in recent times. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Clarus Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Clarus Corporation are shown below. More…

Analysis

At GoodWhale, we conducted an analysis of CLARUS CORPORATION‘s fundamentals. Our star chart classification concluded that CLARUS CORPORATION is a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. We believe this type of company might be interesting to investors who are looking for investments with stability and potential for growth. CLARUS CORPORATION is strong in asset, dividend, and growth, and medium in profitability. We found that the company has an intermediate health score of 5/10 considering its cashflows and debt, which means it might be able to safely ride out any crisis without the risk of bankruptcy. We believe this could be an attractive investment opportunity for those looking for a balance between risk and reward. More…

Peers

The competition in the global musical instruments market is expected to intensify in the coming years as leading companies such as Yamaha Corporation, Johnson Health Tech Co. Ltd., and Rapala VMC Corporation battle for market share. The competition among these companies is likely to be driven by factors such as product innovation, marketing campaigns, and expansion into new geographic markets.

– Yamaha Corp ($TSE:7951)

Yamaha Corporation is a Japanese multinational corporation and conglomerate with a wide range of products and services, predominantly musical instruments, electronics, motorcycles, power sports equipment, and other motorized products.

The company has a market capitalization of 955.5 billion as of 2022 and a return on equity of 7.25%. Yamaha’s products are marketed under a variety of brand names, including Yamaha, Line 6, Steinberg, and Yamaha Pro Audio. The company also operates a number of subsidiaries, including Yamaha Music Education, Yamaha Motor Company, and Yamaha Golf-Car Company.

– Johnson Health Tech Co Ltd ($TWSE:1736)

Johnson Health Tech Co Ltd has a market cap of 22.03B as of 2022, a Return on Equity of -2.12%. The company is a leading manufacturer and distributor of fitness equipment and related products. Its products include treadmills, ellipticals, exercise bikes, strength training equipment, and home gyms. The company operates in over 100 countries and has a strong presence in the United States, Europe, and Asia.

– Rapala VMC Corp ($OTCPK:RPNMF)

Rapala VMC Corporation is a Finnish manufacturer of fishing lures, hooks, and other fishing tackle. The company has a market capitalization of 165.26 million as of 2022 and a return on equity of 7.98%. Rapala VMC Corporation is a leading provider of fishing products and services worldwide. The company’s products are sold in over 140 countries. Rapala VMC Corporation’s products include fishing lures, hooks, line, and other fishing tackle. The company also manufactures and sells fishing rods, reels, and other fishing equipment.

Summary

Clarus Corporation is a publicly traded company that recently sold its precision sport division for $175 million. This news has resulted in the stock price of Clarus Corporation increasing significantly on the same day. Investing analysis of the company suggests that investors should view this transaction positively as the return on investment is expected to be high and the sale of this division should help the company to improve its financial position.

Additionally, the company is expected to benefit from the additional capital generated by the sale and also be able to focus its resources on more profitable sectors. Overall, Clarus Corporation presents an attractive option for investors as it is performing well and should continue to do so in the near future.