Dorel Industries buys majority stake in distributors in Colombia and Panama
by The Canadian Press
Firm will own 70 per cent of Best Brands Group SA in Panama and Baby Universe SAS in Colombia
MONTREAL—Dorel Industries Inc. says it has signed a deal to buy a majority stake in two distributors of infant and children’s products in Colombia and Central America.
The purchase price was not disclosed for the companies that had US$14-million of sales last year.
Dorel will own 70 per cent of Best Brands Group SA in Panama and Baby Universe SAS in Colombia.
The remaining 30 per cent will be held by the Sitnisky family and the current owners of the operations.
The Sitniskys are Dorel’s minority partner in Chile and Peru where they operate the Infanti brand.
The acquisition is expected to be immediately accretive to Dorel’s earnings.
Dorel CEO Martin Schwartz said the 130-million people in Colombia, Ecuador, Venezuela and Central America are an important emerging consumer base.
“This is another concrete step in the implementation of Dorel’s geographic expansion strategy to grow in new markets with good growth potential,” he stated.
“Our Chilean acquisition has been very successful. This move will energize our momentum and accelerate our market share penetration in the near future. It also expands our footprint with the Infanti brand.”
Dorel is one of the world’s largest manufacturers of juvenile products such as infant car seats and bicycles.
It also makes ready-to-assemble furniture.
Its brands include Safety 1st, Quinny, Cosco and Maxi-Cosi, while it also sells bikes under the Cannondale, Schwinn, GT, Mongoose and IronHorse brands.