Montreal’s Dorel buys Chinese firm for $120M
by The Canadian Press
Dorel's acquisition includes three plants in China and a car seat research and development facility in Taiwan
MONTREAL—Dorel Industries Inc. is buying Hong Kong-based Lerado Group, one of the largest manufacturers of infant and juvenile products in China, for US$120 million.
The purchase will provide Dorel with its first company-owned factories in Asia.
The acquisition includes four facilities, three plants in China and a research and development facility in Taiwan.
Montreal-based Dorel says it will benefit from Lerado’s new facilities and technology, including a recently constructed car seat crash test laboratory similar to those owned by Dorel in the U.S. and Europe.
The transaction is expected to close later this year and isn’t expected to add to earnings in the first year of operations as Dorel integrates the new facilities into its existing operations.
Dorel manufactures a number of children’s products under the Safety 1st, Quinny, Cosco, Maxi-Cosi and Bebe Confort brands, while its bikes and related products include brands such as Cannondale, Schwinn, GT, Mongoose, IronHorse and Sugoi. Dorel has annual sales of US$2.6 billion and employs 6,300 people in 24 countries.