Sierra Bullets LLC, a subsidiary of Salt Lake City-based Clarus Corp., is acquiring the assets of Barnes Bullets of Mona. Barnes has been undergoing Chapter 11 bankruptcy reorganization. Sierra is expected to acquire Barnes for $30.5 million in cash. For the 12 months ended June 30, Barnes Bullets reported $21.8 million in sales. Sierra Bullets is located in Sedalia, Missouri.
Founded in 1932, Barnes is an industry leader in manufacturing lead-free bullets. The company offers a full line of premium component bullets and ammunition sold through nation retailers and e-commerce channels.
“Barnes embodies the ‘innovate and accelerate’ playbook we seek with ‘super-fan’ brands,” said John Walbrecht, Clarus’ president. “Barnes is a leader in lead-free, all-copper bullets, with a rich history of product innovation and strong brand awareness amongst the core enthusiast, yet it has untapped go-to-market potential. We believe these ingredients give us a heightened advantage to develop world-class products, increase brand awareness, expand product categories and improve distribution while staying true to the core user.”
Warren Kanders, Clarus executive chairman, said, “The Barnes acquisition caps off our strategy to build a leader in specialty premium bullets and ammunition. We now have a platform of scale that we expect to continue to deliver strong recurring revenue with high gross margins and free cash flow conversion. This acquisition also demonstrates our ability to patiently wait for strategic assets at attractive values that we expect to drive growth and maximize our returns on invested capital. We look forward to further acquisition efforts being in similarly accretive, strategic areas outside of the bullet and ammunition market.”
The transaction is subject to the approval of the bankruptcy court. Once approved, the purchase agreement is expected to close in October.