Acquisitions of Tiny Love Ltd. part of Canadian bike and baby product maker's global growth strategy
MONTREAL—Quebec-based bike and baby product maker Dorel Industries Inc. said it is buying an Israeli firm for an undisclosed price as the company looks to grow its international presence.
Dorel said it has entered an agreement purchase Tiny Love Ltd., a baby products maker headquartered in Tel Aviv, Israel.
“We are delighted to be acquiring Tiny Love, a proven and well-known juvenile products company within our industry,” Dorel president and CEO Martin Schwartz said in a statement.
“They have growing brand recognition that is synonymous with child developmental excellence. With their strong distribution network in diverse markets, this latest investment further solidifies our position as a global leader in the juvenile industry and expands the geographies in which we operate.
“Tiny Love is particularly strong in Eastern Europe which is an important part of our growth strategy.”
With offices located in the United States and China, Tiny Love had 2013 sales of roughly US$45-million, according to Dorel.
Known as an innovator in the developmental toy category, Tiny Love makes products like activity gyms, mobiles, light gear and toys designed specifically for babies and toddlers.
Sales are made in more than 50 countries worldwide, of which 75 per cent are through a worldwide distributor network and the remainder is in North America through its U.S. subsidiary.
The company has a strong R&D heritage with a focus on baby development through observational studies of baby behaviour and the use of third party experts from a local Israeli university.
“With this acquisition, we are expanding our product line into an area that complements our existing business and our brand portfolio is further strengthened,” Dorel juvenile group president Jean-Claude Jacomin said.
“Israel is known as a country that is a leader in research and development and we expect that our global operations will benefit from this additional expertise. We are certain this will enhance our on-going product innovation efforts.”
The transaction is expected to close in the first quarter of this year.