Dorel to Acquire Juvenile Products Company Tiny Love
Montreal, Quebec - 1/9/2014
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced it has signed a share purchase agreement to acquire Tiny Love Ltd., a global, multiple award-winning baby products and developmental toy company headquartered in Tel Aviv, Israel, with offices located in the U.S. and China. Annual sales for the fiscal year ended December 31, 2013 were approximately US$45 million. Tiny Love is profitable and has a strong cash flow. The transaction is expected to close in the first quarter. The purchase price was not disclosed.
Tiny Love is recognized as an innovator in the developmental toy category, which comprises products like activity gyms, mobiles, light gear and toys designed specifically for babies and toddlers, and is a product line that is complimentary to Dorel’s. Sales are made in more than 50 countries worldwide, of which 75% are through a worldwide distributor network and the remainder is in North America through its U.S. subsidiary. The company has a strong R&D heritage with a focus on baby development through observational studies of baby behaviour and the use of third party experts from a local Israeli university.
“We are delighted to be acquiring Tiny Love, a proven and well-known juvenile products company within our industry. They have growing brand recognition that is synonymous with child developmental excellence. With their strong distribution network in diverse markets, this latest investment further solidifies our position as a global leader in the juvenile industry and expands the geographies in which we operate. Tiny Love is particularly strong in Eastern Europe which is an important part of our growth strategy,” stated Dorel President and CEO, Martin Schwartz.
Dorel Juvenile Group President & CEO, Jean-Claude Jacomin, added: “With this acquisition, we are expanding our product line into an area that complements our existing business and our brand portfolio is further strengthened. Israel is known as a country that is a leader in research and development and we expect that our global operations will benefit from this additional expertise. We are certain this will enhance our on-going product innovation efforts.”
Tiny Love President Fredy Aboukrat said that the clear strength of the company is being expert in satisfying both baby's developmental needs and those of their parents. This enables them to bring smart, innovative solutions in baby products and toys.
“We are always on the lookout for the next innovation that will stimulate baby's skills and senses and help parents and caregivers enjoy their time together during those first immensely exciting years. Original concepts and groundbreaking designs made with love and care are instantly identifiable as Tiny Love creations. Compromise is not an option. We are consistently attuned to genuine consumer needs. We maintain a youthful, enthusiastic company atmosphere that nurtures the creative spirit which we incorporate with our unwavering commitment to the highest standards of quality. We see Dorel’s entrepreneurial culture as the perfect fit and see exciting potential going forward.”
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Dorel creates style and excitement in equal measure to safety, quality and value. The Company’s lifestyle leadership position is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting products. Dorel’s powerfully branded products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI in Recreational/Leisure. Dorel’s Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.6 billion and employs 6,300 people in facilities located in twenty-four countries worldwide.