by MONTREAL, Quebec – RTA and youth furniture specialist Dorel Industries Inc. has completed its previously announced sale of Dorel Sports to Dutch mobility group Pon Holdings B.V. for $810 million.
The company said that at closing, the sale netted about $735 million, which Dorel plans to reduce indebtedness and for the payment of a special dividend of $12 per share, representing an aggregate amount of about $390 million.
The special dividend will be paid Feb. 1 to shareholders of record as of the close of business Jan. 18.
“The declaration of the special dividend is consistent with Dorel’s commitment to return value to our shareholders,” said Dorel President and CEO Martin Schwartz. “After consulting with Dorel’s financial advisors, the Board of Directors has decided to use the net proceeds from the sale of Dorel Sports to pay the special dividend and to reduce Dorel’s indebtedness. We believe that the result will be both value for our shareholders and a stronger balance sheet for Dorel going forward,” said Martin Schwartz.
Dorel also noted that the transaction consisted of the sale of 100% of the shares of its indirect wholly owned subsidiary companies that included Dorel Sports as well as other related assets. The sports segment included well known cycling brands such as Schwinn, Cannondale, GT, Mongoose and others.
“We are very pleased to have completed the sale of Dorel Sports to a great company like Pon,” Schwartz added. “On behalf of the Board of Directors, I again thank the Dorel Sports team for their commitment to Dorel and their great achievements. We believe that with this sale, Dorel has realized full value for Dorel Sports, for the benefit of Dorel and our shareholders.”
Moving forward, the sale also allows the company to focus on its furniture business, including its RTA, home office and nursery and youth furniture lines as well as its baby products businesses that include strollers, car seats, activity sets and other baby gear and toys.
