MONTRÉAL (BRAIN) — Dorel Industries has agreed to a buy-out offer from a group backed by Cerberus Capital led by a family group that includes CEO Martin Schwartz and other current Dorel executives. The buy-out would take Dorel off the stock market.
Dorel is the owner of Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and other cycling brands, as well as home furniture and juvenile products divisions.
The buyer's group has entered a definitive agreement to purchase all Dorel shares for CA$14.50 ($11.09) per share in cash, excluding shares held by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz, Jeff Segel and members of their immediate families
Dorel's board accepted the offer on the recommendation of a special committee that determined the offer was in the best interest of Dorel and its non-family shareholders.
Norman M. Steinberg, the chair of the committee, said, "Today's announcement is the culmination of a comprehensive process that began in December 2019 when the family shareholders informed the Dorel board of directors of their intention to initiate a process to find a partner to take Dorel private. Over a period of 11 months, the special committee, with the advice of independent financial and legal advisors, has overseen and supervised this process, including contacting more than 25 potential financial sponsor partners, providing diligence materials to such partners, reviewing and considering non-binding proposals submitted by certain of these parties, and negotiating the financial and legal terms of the transaction proposed by the buyer group.
