Business
Dorel aquires Brazil's Caloi, Latin America's largest bicycle brand
Transaction boosts Dorel's bicycle revenues to more than US$ 1 billion EXCHANGES ...
About this update from Dorel Industries Inc. Class A
[{"type":"text","content":"\n\n\nTransaction boosts Dorel's bicycle revenues to more than US$ 1 billion\n\n\nEXCHANGESTSX: DII.B, DII.A\n\n\nMONTREAL, Aug. 22, 2013 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.A, DII.B) today announced it is\n acquiring a 70% interest in Caloi, a major Brazilian manufacturer\n of bicycles and bicycle equipment. Established in 1898 in Brazil, Caloi\n is one of the oldest and most established bicycle brands in the world.\n It is the largest bicycle brand in Latin America and is the leader in\n the Brazilian market. The purchase price was a high single digit\n multiple of Caloi's EBITDA. Sales in 2012 were close to R$273.5\n million, a 22% increase over the previous year. The Company has an\n estimated market share in Brazil of more than 40%. The transaction is\n expected to be immediately accretive to Dorel's earnings.\nCaloi's portfolio encompasses a full range of bicycles, from\n high-performance to children's models, including mountain bikes, urban,\n recreational and road bikes. Caloi's products are distributed across\n the country through a variety of channels, from mass market to\n independent bicycle dealers.\nCaloi employs 900 people at its various locations, including its head\n office in São Paulo, the Technology and Logistics Center in Atibaia and\n its manufacturing facility in Manaus, which is the largest bicycle\n manufacturing plant outside Southeast Asia, producing more than 700,000\n units per year.Brazil will become a production hub for Dorel. Caloi's factory in Manaus\n will assemble bikes for the company's brands, such as Cannondale,\n Schwinn, Mongoose and GT to serve the Brazilian and export markets.\n\"This new partnership with Caloi positions Dorel as one of the largest\n bicycle companies in the world, as well as a leader of the Americas,\"\n commented Dorel President & CEO, Martin Schwartz. \"We have built this\n segment into a billion dollar business in just nine years and see\n tremendous growth ahead. We remain focused on maximizing this sector so\n that we may continue to enhance shareholder value. We are delighted to\n welcome the Caloi team to Dorel. Eduardo Musa, current Caloi CEO will\n become the bicycle segment's Brazil President and will join its global\n management team.\"\nMr. Schwartz added that Dorel has been doing business in Brazil since\n 2009 w...