January 4/22 10:50 am - Dorel Completes Sale of Cycling Division to Pon

Posted by Editor on 01/4/22
 

Dorel Industries Inc. (TSX: DII.B, DII.A) has announced that it has completed the previously-announced sale of Dorel Sports, its bicycle segment, to Pon Holdings B.V., a Dutch mobility group, for US $810 million, representing approximately CAD $1.03 billion. At closing, Dorel received net proceeds from the sale of approximately US $735 million, which Dorel will use for payment of a special dividend of US $12.00 per share and to reduce indebtedness. The transaction consisted of the sale by Dorel of 100% of the shares of its indirect wholly-owned subsidiary companies comprising Dorel Sports as well as certain related assets.

"We are very pleased to have completed the sale of Dorel Sports to a great company like Pon. On behalf of the Board of Directors, I again thank the Dorel Sports team for their commitment to Dorel and their great achievements," said Martin Schwartz, Dorel President and CEO. "We believe that with this sale, Dorel has realized full value for Dorel Sports, for the benefit of Dorel and our shareholders," Mr. Schwartz added.

The cycling division includes brands such as Cannondale, Schwinn, GT, Mongoose, Charge Bikes, KidTrax and Caloi. Pon already includes the cycling brands of Gazelle, Cervélo, Focus, Santa Cruz, Kalkhoff and Faraday.