Business
Dorel Intends to Acquire the Juvenile Business of Asian Based Lerado Group
Strategic acquisition to reinforce supply chain and increase competitiveness Prop...
About this update from Dorel Industries Inc. Class A
[{"type":"text","content":"\n\n\n\n\nStrategic acquisition to reinforce supply chain and increase\n competitiveness\n\n\n\nProposed purchase includes significant manufacturing and R & D\n facilities\n\n\n\nEXCHANGES\nTSX: DII.B, DII.A\n\n\n\n\n\nMONTREAL, June 16, 2014 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B\n DII.A) today announced that it has signed an agreement to acquire the\n juvenile business of Hong Kong-based Lerado Group, one of the largest\n juvenile product manufacturers in China, specializing in the design and\n manufacture of a wide range of infant and juvenile products. The Lerado\n Group is a subsidiary of Lerado Group (Holding) Company Limited, a\n publicly traded company listed on the Hong Kong Stock Exchange. The\n purchase price has been established at HK$930 million (US$120 million),\n subject to adjustments, and will be due upon closing.\n\n\n\"This is a sound investment in our future to ensure that going forward\n we control our own destiny. This venture will allow us to be more\n flexible in an increasingly changing environment. It has become more\n important than ever to be vertically integrated and be in direct\n control of our supply chain,\" stated Dorel President & CEO, Martin\n Schwartz.\n\n\n\"Dorel has built its juvenile business into a global player by focusing\n on several key pillars; great quality products, diversity of strong\n brands and a strong distribution model. Now with these additional\n excellent facilities in Asia, our strategy to maintain and grow our\n leadership in the industry is further strengthened,\" added Dorel\n Juvenile Group President & CEO Jean-Claude Jacomin.\n\n\nMr. Schwartz emphasized that even though Dorel will operate its own\n manufacturing network, it will continue to purchase other juvenile\n products from existing Asian suppliers with whom relationships have\n been built over time.\n\n\nThe purchase will provide Dorel with its first company-owned factories\n in Asia. It is expected that the current management overseeing the\n facilities will remain with Dorel and will be joined by additional\n Dorel employees. They will work closely with existing product\n development teams at the Company's various juvenile divisions, as well\n as with existing staff at Dorel's quality control and customer support\n offices located throughout China. Dorel will benefit from Lerado'...