Dorel Industries has completed the previously-announced sale of Dorel Sports, its bicycle segment, to Pon Holdings, the Dutch mobility group, for US$810 million.
The transaction consisted of the sale by Dorel of 100% of the shares of its indirect wholly-owned subsidiary companies comprising Dorel Sports as well as certain related assets. Dorel received net proceeds from the sale of approximately US$735 million, which it will use for payment of a special dividend of US$12.00 per share and to reduce indebtedness.
“We are very pleased to have completed the sale of Dorel Sports to a great company like Pon,” said Martin Schwartz, Dorel President and CEO. “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.”
The sale of Dorel Sports includes brands such as Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse.
In the cycling space, Pon has already built up a premium brand portfolio. This includes Cervélo, FOCUS, Santa Cruz, Kalkhoff and Faraday. The company is based in the Netherlands, with offices in Germany, the USA, Canada, China, Taiwan, the UK, Hong Kong and Australia.
