Business
Dorel's Pacific Cycle further strengthens mass market position with purchase of PTI Sports assets
- Bicycle parts and accessories company second largest in U.S. - PTI known for innovation and str...
About this update from Dorel Industries Inc. Class A
[{"type":"text","content":"\n\n\n\n- Bicycle parts and accessories company second largest in U.S.\n\n\n- PTI known for innovation and strong brands\n\n\nEXCHANGES\n\n\nTSX: DII.B, DII.A\n\n\nMONTREAL, June 26 /CNW Telbec/ - Dorel Industries Ltd. (TSX: DII.A,\nDII.B;) today announced its Pacific Cycle division has acquired the assets of\nPTI Sports, a leading U.S. designer, manufacturer and distributor of bicycle\nparts, helmets and other accessories. The purchase is in line with Dorel's\nstrategy to aggressively grow its bicycle and juvenile products businesses.\nPTI will be integrated into the Pacific Cycle division within Dorel's\nRecreational/Leisure segment. The transaction will be immediately accretive to\nearnings.\n\n\nThe purchase price was US$28.1 million. PTI recorded sales of\nUS$ 65 million and an adjusted EBITDA of US$ 5 million in the 2007 fiscal\nyear.\n\n\nEstablished in 1991, PTI Sports has widespread distribution at the key\nmass and sporting goods retailers throughout North America, including Category\nManager positions and 100% exclusive agreements with a number of its\ncustomers. With a dedication to product innovation, PTI's brand portfolio is\nthe strongest in the industry, with such licenses as: Schwinn, Mongoose,\nDisney, Nickelodeon, Mattel (Polly) Master Lock, Thomas the Train and The\nDiscovery Channel. PTI is the number two North American player in the bicycle\nhelmet market.\n\n\nPacific Cycle and PTI Sports began its relationship in 2002 with a\nlicense agreement to bring Schwinn and Mongoose branded bicycle parts and\naccessories to market. Since then, the ties between the two organizations have\ndeveloped into a partnership that includes marketing initiatives and product\ndevelopment innovations.\n\n\nAn excellent fit with Dorel's growth strategy\n\n\nDorel President and CEO, Martin Schwartz stated the PTI Sports\nacquisition underscores the Company's commitment to enhance shareholder value.\n"We are executing on our plan to focus on and grow our Recreational/Leisure\nsegment. In February Dorel purchased Cannondale bicycles and SUGOi fitness\napparel to augment our position in the independent bicycle dealer (IBD)\ncategory. While this transaction will have little impact on our IBD business,\nPTI fits perfectly with Pacific Cycle, our mass merchant division, and we can\nnow go to the major chains and offer integrated b...