contact HGO      +1 613.475.4704

 Home / Article: Dorel going private

Dorel going private

 18 November 2020     HGO Staff 

MONTREAL – The founding family of Dorel Industries is poised to take the consumer goods giant private after reaching what was called a “definitive arrangement agreement” that will see them acquire all of the company’s outstanding shares following a special meeting of shareholders that is expected to be held sometime in January 2021.

Earlier this week, the company said a buyer group consisting of the family shareholders and the New York-based investment firm Cerberus Capital Management will acquire all of Dorel’s issued and outstanding Class B Subordinate Voting Shares and Class A Multiple Voting Shares for C$14.50 per share in cash.

The family shareholders include Martin Schwartz, who has been president and chief executive officer of Dorel since 1992; Jeffrey Schwartz, executive vice president and chief financial officer; Alan Schwartz, executive vice president of operations; and, Jeff Segel, executive vice president of sales and marketing. Each also sits on Dorel’s board of directors and, according to the statement announcing the deal, they control approximately 6.58 million of the outstanding shares.

According to its most recently quarterly report to the Ontario Securities Commission, there are approximately 4.2 million Class ‘A’ shares issued as well as about 28.3 million Class ‘B’ outstanding in Dorel.

The buyer group originally approached Dorel’s board of directors in December 2019 to announce their intent to purchase the company’s outstanding shares. A special committee was struck with company director Norman Steinburg as chairman.

“The family shareholders believe that the arrangement is a win for all of Dorel’s stakeholders, including the public shareholders,” Martin Schwartz said in a statement. “This transaction will enable Dorel to continue to serve our employees, business partners and other stakeholders, and positions Dorel on a path for continued growth.”

“We are very pleased to partner with the family shareholders in this transaction,” commented Scott Wille, senior managing director at Cerberus. “Dorel has a long and successful history based on its entrepreneurial culture. We are excited to collaborate with Dorel’s talented and dedicated managers and employees across all three of their business segments to further accelerate growth and enhance each segment’s leadership position.”

The cash consideration to be paid to the public shareholders will be financed through a combination of cash funded by the buyer group and by Koch Equity Development and committed financing from a group of lenders. 

Related Story: Dorel reports revenue climb

Related Story: Dorel going private, Schwartz family strikes deal with U.S. group

Stearns & Foster
Cocoon by Sealy
This HGO article was written by:
The HGO Merchandiser
Summer 2022
Summer 2022
Spring 2022
Spring 2022
Autumn 2021
Autumn 2021
Summer 2021
Summer 2021

 View all editions of The HGO Merchandiser.

  About HGO

Home Goods and its accompanying newsletter - HGO This Week - covers the furniture, bedding, appliances, consumer electronics, accessories, lamps and lighting and floor coverings product sectors of the big ticket home goods market in Canada. HGO is also a forum for the dissemination of market research and hard-hitting articles on best practices for Canadian retailers.

  Contact Us
  Home Goods Online

Published by:
Windsor Bay Communications Inc.
P.O. Box 3023; 120 Ontario Street,
Brighton ON Canada K0K 1H0

Tel : 613.475.4704

Fax : 613.475.0829
Mail : contact us