Dorel purchases assets of Australian bicycle distributor and creates Cycling Sports Group Australia
New entity will focus strictly on Independent Bike Dealer channel
EXCHANGES TSX: DII.B, DII.A
MONTREAL, Aug. 4 /PRNewswire-FirstCall/ -- 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.
Profile
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 B b 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.
Source: DOREL INDUSTRIES INC.
CONTACT: MaisonBrison: Rick Leckner, (514) 731-0000; Dorel IndustriesInc.: Jeffrey Schwartz, (514) 934-3034
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