Dorel purchases Polish juvenile products distributor
TSX: DII.B, DII.A
MONTREAL, Jan. 5, 2012 /PRNewswire/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced it has purchased 100% of juvenile products distributor and retailer Poltrade, based in Katowice, Poland. Dorel is creating a new division, Dorel Polska, as it continues to expand its global footprint in the juvenile products industry. Poltrade has seen strong sales growth in recent years with 2012 sales expected to be approximately 7.5 million Euros.
"Dorel has had an ongoing relationship with Poltrade since 1996 as the distributor of a number of our products in Poland. We see this as a natural extension of this affiliation. It is another tangible example of our strategy to grow in markets outside North America. In view of the opportunities we see in this region, the integration with Dorel will give the Polish team additional means to extend both brand and product category penetration in this key market of Central Europe," stated Dorel Juvenile Segment Group President & CEO, Hani Basile.
Poltrade was established in 1991 and currently enjoys a leading position in the Polish car seat safety market. In addition to its distribution business, Poltrade operates three retail outlets. Founder Marek Waletko, who is remaining with the new Dorel Polska division along with other senior management members, was first exposed to the Maxi-Cosi line 15 years ago at the Cologne juvenile trade show.
"From the first moment we knew this was a brand we truly wanted to represent. We were impressed with the functionality, aesthetics, design and the care with which the needs of child safety seats were considered. We decided to seek the exclusive rights to import these products into Poland. Now we are delighted to take this association to the next level and join the Dorel family," stated Mr. Waletko.
Last month Dorel concluded its transaction to acquire a 70% interest in
an existing group of companies, known principally as Silfa, who own and
operate the popular Infanti brand in Chile, Bolivia, Peru and Argentina.
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, 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 is a US$2.3 billion company with 5,400 employees, facilities in twenty-one countries, and sales worldwide.
Caution Regarding Forward Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize. Forward-looking statements are provided in this press release for the purpose of giving information about Management's current expectations and plans and allowing investors and others to get a better understanding of Dorel's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channel; foreign currency fluctuations; customer and credit risk including the concentration of revenues with few customers; costs associated with product liability; changes in income tax legislation or the interpretation or application of those rules; the continued ability to develop products and support brand names; changes in the regulatory environment; continued access to capital resources and the related costs of borrowing; changes in assumptions in the valuation of goodwill and other intangible assets and subject to dividends being declared by the Board of Directors, there can be no certainty that Dorel's Dividend Policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel's annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference.
Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on our business, financial condition or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Dorel therefore cannot describe the expected impact in a meaningful way or in the same way Dorel presents known risks affecting the business.
SOURCE DOREL INDUSTRIES INC.