Canadian Manufacturing

Dorel Industries accepts Cerberus led offer to go private for $14.50 per share

The deal ends an 11-month saga for Dorel

November 13, 2020  The Canadian Press

MONTREAL — Dorel Industries says it will exit the public market as part of a go-private deal led by Cerberus Capital Management LP and the family that has had voting control of the company for decades.

The Montreal-based bike, car seat and furniture maker says a group, led by a Cerberus affiliate, will buy Dorel for $14.50 per share in cash, except for shares owned by a group of family shareholders that includes Dorel’s chief executive officer.

Dorel says TD Securities valued its shares in the range of $14 to $17 per share on Nov. 12, and that $14.50 was the highest offer for the company.

The deal ends an 11-month saga for Dorel, which makes Cosco and Safety 1st child car seats, Cannondale and Schwinn bicycles.

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Chief executive Martin Schwartz says the deal is a win for all stakeholders, including those with publicly traded shares, after more than 25 potential financial sponsors and partners were vetted.

Dorel recently reported third-quarter revenue growth of 9.9% compared to the same time last year, as it struggled to keep up with demand for bicycles and home furniture amid shifting consumer spending patterns related to the COVID-19 pandemic.


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