Recent mergers will lead to Salt Lake growth for Black Diamond

HOLLADAY — A major Utah producer of outdoor products has established a firmer foothold in what state economic development overseers call a "strategic industry cluster" by merging with an investment company and a pack design and manufacturing company.

Black Diamond Equipment's recent merger with the Connecticut-based investment and management firm Clarus Corp. and with California-based Gregory Mountain Products meshes with the state's plans to rely on the outdoor recreation industry as a capable contributor to Utah's long-term economic growth, according to a news release from the Governor's Office of Economic Development.

According to the news release, the merger means Black Diamond plans to add 55 new full-time positions in Salt Lake County, in both headquarters and distribution facilities, over the next 10 years.

Many jobs will be added fairly quickly, however, with the average salaries for the positions exceeding 125 percent of the going pay rate in the county, according to the news release. Jobs include a health insurance plan and other fringe benefits.

As part of the deal to draw the jobs here, the state will issue post-performance tax credits of up to 20 percent of qualified new state tax revenue — or a maximum of $395,500 — over 10 years.

The rebates will be awarded only after the company meets its expected obligations. According to the news release, Black Diamond is expected to pay more than $32 million in new wages over the life of the incentive, and the state will receive approximately $1.9 million in new state tax revenue.

GOED executive director Spencer Eccles said the merger enhances the Utah company's long tradition as a leader in outdoor products and great corporate citizenship.

Black Diamond was formed in 1989 via an employee asset purchase of the now defunct California company Chouinard Equipment Ltd. Black Diamond designs, manufactures and markets products ranging from carabiners, harnesses and protection pieces for rock climbing to ice axes and crampons for ice climbing and alpinism; skis, boots, and bindings for skiers; and support gear such as tents, packs and headlamps for all who use the backcountry.

The company relocated to Salt Lake County in 1991 so employees building the products could be close to areas where outdoor enthusiasts use the products. The company generates more than $90 million in annual revenue, operates on three continents and is a vocal defender of access to and preservation of the mountain and canyon environments.

e-mail: jthalman@desnews.com