Salt Lake City’s Clarus Corp., a global holding company focused on the outdoor and consumer enthusiast markets, has entered into an agreement to buy Australia-based Rhino-Rack Pty Ltd., a manufacturer and distributor of automotive roof racks, trays, mounting systems, luggage boxes, carriers and accessories. Clarus will pay $198 million for Rhino-Rack, which will continue to operate independently as a wholly owned indirect subsidiary of Clarus.
Clarus said the purchase price is comprised of $150 million cash and approximately 2.3 million shares of Clarus common stock. Richard Cropley, Rhino-Rack’s founder and managing director, is anticipated to be a top five shareholder of Clarus following the completion of the transaction. Clarus expects the cash payment to be financed through the upsizing of the company’s existing credit facility led by J.P. Morgan.
“Rhino-Rack is truly a unique brand and one that we view as perfectly aligning with our Super Fan brand acquisition strategy,” said John Walbrecht, president of Clarus. “Since its founding, Richard has built a durable business with leading brand and market positions, a customer-centric focus and an affinity for protecting and funding an important cause related to rhinoceros conservation. Immediately following the closing of the transaction, we intend to expand Rhino-Rack’s product penetration in North America, organically grow in its core Australia and New Zealand markets and capitalize on our existing network of key distributors and dealers to develop sales in the rest of the world. We are excited to welcome the entire Rhino-Rack team to Clarus as we continue our shared vision of providing consumers with the best engineered products designed to get them from their homes to their adventures.”
Rhino-Rack has a leading market share for its core products in Australia and New Zealand with a growing presence globally, particularly in the U.S., Walbrecht said.
“When we founded Rhino-Rack, we set out to create world-class roof racks for outdoor enthusiasts,” Cropley said. “After three decades, we have developed a deep heritage and a loyal and passionate user base, which we have expanded into a variety of other products and markets. We are excited to have a partner that shares our commitment to innovation and has a track record of growing successful brands across categories, regions and channels.”
The transaction is expected to close in July 2021, subject to customary closing conditions as well as certain regulatory approvals in New Zealand. Following the closing of the transaction, the Rhino-Rack management team will continue to run the business from Rhino-Rack’s headquarters in Sydney, Australia.
