Dorel purchases assets of Australian bicycle distributor and creates Cycling Sports Group Australia
Montreal, Quebec - 8/4/2009
Dorel Industries Inc. (TSX: DII.B, DII.A), today announced it has acquired the assets of Sydney, Australia-based Gemini Bicycles for US$2.2 million and is creating a new subsidiary to be known as Cycling Sports Group (CSG) Australia. The new division will unite Dorel’s key Recreational/Leisure brands; Schwinn, Mongoose, Cannondale, GT and SUGOI under one roof and will be dedicated to the Independent Bike Dealer (IBD) channel.
CSG Australia, located in Sydney, will coordinate all sales, marketing, distribution and customer service to better support its growing network of dealers in Australia. CSG Australia will evolve in phases; beginning immediately, the new company will distribute Schwinn and Mongoose, followed by Cannondale on January 1, 2010 and GT on August 1, 2010.
“The creation of CSG Australia is in line with our strategy to accelerate our growth agenda globally and to make our operations there more efficient. This new organization will be charged with driving growth within our critical IBD channel by leveraging our excellent portfolio of recognized brands with leading consumer innovations,” stated Robert Baird, president of Dorel’s Recreational/Leisure segment.
Noel McFarlane, former owner of Gemini has been named Managing Director of CSG Australia. McFarlane has owned and operated Gemini Bicycles, the distributor of Mongoose in Australia, for the past 16 years and brings his extreme passion and experience to Dorel.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Established in 1962, 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 and SUGOI in Recreational/Leisure. Dorel’s Home Furnishings segment markets a wide assortment of furniture products, both domestically produced and imported. Dorel is a US$2.2 billion company with 4700 employees, facilities in eighteen countries, and sales worldwide.
Caution Concerning Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Dorel Industries Inc. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. The business of the Company and these forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ from expected results. Important factors which could cause such differences may include, without excluding other considerations, increases in raw material costs, particularly for key input factors such as particle board and resins; increases in ocean freight container costs; failure of new products to meet demand expectations; changes to the Company’s effective income tax rate as a result of changes in the anticipated geographic mix of revenues; the impact of price pressures exerted by competitors, and settlements for product liability cases which exceed the Company’s insurance coverage limits. A description of the above mentioned items and certain additional risk factors are discussed in the Company’s Annual MD&A and Annual Information Form, filed with the securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference. The Company’s business, financial condition, or operating results could be materially adversely affected if any of these risks and uncertainties were to materialize. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.