- Complementary product line of innovative baby products and developmental toys
- Sales in over 50 countries worldwide
- Profitable business with strong cash flow
MONTREAL, Jan. 9, 2014 /PRNewswire/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced it has signed a share purchase agreement to acquire Tiny Love Ltd., a global, multiple award-winning baby products and developmental toy company headquartered in Tel Aviv, Israel, with offices located in the U.S. and China. Annual sales for the fiscal year ended December 31, 2013 were approximately US$45 million. Tiny Love is profitable and has a strong cash flow. The transaction is expected to close in the first quarter. The purchase price was not disclosed.
Tiny Love is recognized as an innovator in the developmental toy category, which comprises products like activity gyms, mobiles, light gear and toys designed specifically for babies and toddlers, and is a product line that is complimentary to Dorel's. Sales are made in more than 50 countries worldwide, of which 75% are through a worldwide distributor network and the remainder is in North America through its U.S. subsidiary. The company has a strong R&D heritage with a focus on baby development through observational studies of baby behaviour and the use of third party experts from a local Israeli university.
"We are delighted to be acquiring Tiny Love, a proven and well-known juvenile products company within our industry. They have growing brand recognition that is synonymous with child developmental excellence. With their strong distribution network in diverse markets, this latest investment further solidifies our position as a global leader in the juvenile industry and expands the geographies in which we operate. Tiny Love is particularly strong in Eastern Europe which is an important part of our growth strategy," stated Dorel President and CEO, Martin Schwartz.
Dorel Juvenile Group President & CEO, Jean-Claude Jacomin, added: "With this acquisition, we are expanding our product line into an area that complements our existing business and our brand portfolio is further strengthened. Israel is known as a country that is a leader in research and development and we expect that our global operations will benefit from this additional expertise. We are certain this will enhance our on-going product innovation efforts."
Tiny Love President Fredy Aboukrat said that the clear strength of the company is being expert in satisfying both baby's developmental needs and those of their parents. This enables them to bring smart, innovative solutions in baby products and toys.
"We are always on the lookout for the next innovation that will stimulate baby's skills and senses and help parents and caregivers enjoy their time together during those first immensely exciting years. Original concepts and groundbreaking designs made with love and care are instantly identifiable as Tiny Love creations. Compromise is not an option. We are consistently attuned to genuine consumer needs. We maintain a youthful, enthusiastic company atmosphere that nurtures the creative spirit which we incorporate with our unwavering commitment to the highest standards of quality. We see Dorel's entrepreneurial culture as the perfect fit and see exciting potential going forward."
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 Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, Caloi, 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 has annual sales of US$2.6 billion and employs 6,300 people in facilities located in twenty-four 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. 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.