Dorel To Sell Bicycle Segment To Pon Holdings For $810 Mln Cash

Following a strategic review, Dorel Industries Inc. (DIIB), a designer and manufacturer of juvenile products, bicycles, and home furnishings, on Monday, said it signed a definitive agreement to sell its bicycle segment, Dorel Sports to Pon Holdings B.V., a Dutch mobility group, for $810 million in cash.

The sale of Dorel Sports, which received the board approval and does not require shareholders' nod, is expected to close before the end of the first quarter of 2022, Dorel said in a statement.

The deal is valued C$1 billion, payable to Dorel at closing.

Dorel expects net proceeds of about $735 million, to be used to reduce debt among others.

Baird Global Investment Banking and BMO Capital Markets are acting as financial advisors and Fasken Martineau DuMoulin LLP as legal counsel to Dorel, while Lazard is serving as financial advisor and Goodmans as legal advisor to Pon Holdings.

Separately, the company said that for its Home and Juvenile businesses uncertainty of supply is a key concern as demand for container freight is driving up the costs.

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