Dorel Launching Dorel Sports Chile to Expand Growing Footprint in Key Global Region
Also acquiring assets of local bicycle retailer
EXCHANGES
TSX: DII.B, DII.A
MONTREAL, Jan. 7, 2015 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) announced today the launch of another new initiative in South America, Dorel Sports Chile S.A. Based in Santiago de Chile, Dorel Sports Chile will lead all sales, marketing, distribution and customer service of all Dorel Sport's (formerly Dorel Recreational/Leisure) brands, including Cannondale, GT, Schwinn, Mongoose, SUGOI and Caloi in Chile and Peru. Dorel Sports Chile will continue to build on Dorel's strategy for geographic expansion and market leadership in its two core businesses in South America.
Dorel also announced today the acquisition of the assets of Intercycles, a Santiago-based bicycle retailer. A long-time distribution partner of Dorel Sports, Intercycles will be an integral part of Dorel Sports Chile, with the new division operating Intercycles' retail location.
Dorel Sports Chile will combine the extensive marketing, logistical and distribution expertise of Dorel's existing juvenile operations in Chile with Intercycles' market specific bicycle knowledge and Dorel Sport's global brand expertise. In addition to selling direct to mass retailers, sporting goods and independent bicycle dealers (IBDs), Dorel Sports Chile will expand the Intercycles retail concept to various locations across the region.
"The launch of Dorel Sports Chile provides an excellent opportunity to build on our presence in these areas where there is significant growth potential for the bicycle industry. We are already well-established in Brazil with Caloi. In addition, we are associating with our existing juvenile partners in Chile. The relationship established with them in 2011 has been most beneficial and with their strong marketing expertise and local connections, we are well positioned for further growth in South America," commented Martin Schwartz, Dorel President & CEO.
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. 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 global juvenile brands Safety 1st, Quinny, Maxi-Cosi, Bébé Confort and Tiny Love, complemented by regional brands such as Cosco and Infanti. In Dorel Sports, brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI. Dorel's Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.4 billion and employs approximately 10,500 people in facilities located in twenty-five countries 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, or if any of them do, what benefits Dorel will derive from them. 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 Dorel's expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channels; 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 there being no certainty that Dorel's current 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 Management Discussion and Analysis 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 Dorel's 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.
SOURCE Dorel Industries Inc.
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