TSX: DII.B, DII.A
MONTREAL, Jan. 27 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B,
DII.A) today announced a further strengthening of its successful high-end
European juvenile lines with the purchase of all of the outstanding shares of
Belgium-based BABY ART bvba. Created in 2006, BABY ART bvba markets its
products under the BABY ART and HOPPOP brands. The innovative baby products
and accessories, feature outstanding modern designs, are highly popular with
consumers and received rave reviews at Europe's prestigious 2008 Cologne,
Germany juvenile trade fair.
The purchase price was US$ 5.3 million (4.1 million Euros). The
transaction, which will be immediately accretive to earnings, is being
financed through debt.
BABY ART is the worldwide leader in the distribution of an original and
unique baby product which allows parents to instantly create the print of
their baby's hand or foot. (www.babyart.eu). The item is sold in 121
countries. Another innovation, Bato, the first double shell bath, maintains
the desired temperature of baby's bath for a longer period of time. Both BABY
ART and HOPPOP (www.hoppop.eu) have won several prestigious international
awards recognising the originality of their various concepts.
Dorel Juvenile Group Interim President, Hani Basile, commented that BABY
ART founder, Christophe Verlinden, has demonstrated an extraordinary passion
for design and innovation in the creation of the Company's products.
"Christophe has a remarkable eye for beauty and a dedication to quality which
sets these items apart. This acquisition is particularly meaningful as it
provides us with a range of high-end, one-of-a-kind specialty juvenile
products. We are most excited about the potential they provide in the
countless markets where Dorel operates."
"We are eager to quickly integrate the BABY ART and HOPPOP lines into our
marketing plans. Our strong relationships with our customers should result in
meaningful synergies throughout our distribution networks," said Dorel Europe
President, Jean Claude Jacomin.
Earlier this month Dorel established a new juvenile platform in Brazil to
maximize the strong potential in that country. Juvenile car restraints became
obligatory in Brazil last June.
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 billion company with 4600 employees, facilities in seventeen
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.
For further information:
For further information: Rick Leckner, MaisonBrison, (514) 731-0000;
Jeffrey Schwartz, Dorel Industries Inc., (514) 934-3034