Dorel Industries, which owns brands such as Cannondale, Schwinn and GT, has terminated an agreement to take the company private.
The company had previously entered an arrangement agreement on November 12, 2020, as amended on January 31, 2021. This was between Dorel and an affiliate of Cerberus Capital Management.
As a result of the termination of the agreement, Dorel’s Board of Directors has cancelled a special meeting of shareholders to be held today – Tuesday, February 16, 2021.
The termination follows exchanges and discussions between Dorel and many of its shareholders. It also followed a review by Dorel of proxy votes submitted prior to the deadline Friday, February 12, 2021.
The termination of the Arrangement Agreement was unanimously approved by the Board of Directors of Dorel. The agreement would have seen Dorel acquired for a purchase price of C$16.00 in cash per share.
“Independent shareholders have clearly expressed their confidence in Dorel’s future and the greater potential for Dorel as a public entity,” said Dorel President and CEO, Martin Schwartz.
“We sincerely appreciate the considerable time and effort Cerberus has devoted to this project. I thank our employees who have maintained an unwavering focus on Dorel’s operations throughout this period.
Shareholder value enhancement remains our top priority and we look forward to continued growth with our excellent brands, worldwide consumer recognition and strong customer relations.”
