contact HGO      +1 613.475.4704

 Home / Article: Dorel to upgrade factories, buys Danish e-commerce firm

Dorel to upgrade factories, buys Danish e-commerce firm

 18 October 2021     HGO Staff 

MONTREAL – Dorel Industries will invest some US$10 million to upgrade the equipment at three of its Dorel Home factories in both Canada and the United States as well as the acquisition of Notio Living, an e-commerce home furnishings firm based in Holstebro, Denmark.

The move follows the company’s recent decision to its Dorel Sports segment to Pon Holdings B.V., a Dutch mobility group, for US$810 million in cash, approximately C$1 billion, payable when the deal closes sometime before the end of the first quarter of 2022.

In a statement, the publicly held manufacturers said the equipment improvements, designed to facilitate production flexibility, will be at the two ready-to assemble (RTA) furniture Ameriwood plants in Tiffin, Ohio and Cornwall, Ontario, as well as at the Dorel Home Products (DHP) facility here.

The upgrades – expected to cost approximately US$10 million – will bring back some production from Asia, helping to offset the industry-wide supply chain issues and will better position the segment for growth with value added innovative new products.

Seen here is the home page of Notio Living, a Danish-based e-commerce furnishings business which was just acquired by Dorel Home, the furniture segment of Dorel Industries.“One of the key benefits of the production investment will be our ability to better serve our e-commerce partners with on-trend products made in North America. The additions at the Ameriwood facilities will drive efficiencies and greater volume of higher value product lines such as entertainment units, storage organization, fireplaces and wall beds, all of which are growing consumer categories,” Dorel Home chief executive officer Norman Braunstein said in a statement.

Dorel Home has long been a major player in the mattress business, known for its lines of futon and baby crib mattresses as well as its Signature Sleep brand of imported mattresses. The new machinery at Montreal’s DHP facility will permit the expansion into coiled spring mattresses, previously imported from Asia. The new machinery at all facilities should be up and running by the first quarter of 2022.

“We are constantly investing and innovating in our Dorel Home business, which has consistently performed well over the years,” Dorel president and CEO Martin Schwartz said. “Given the continuing industry-wide supply chain issues, it was necessary to bring greater stability to our supply chain by upgrading our factories. Once resources are fully ramped up early next year, Dorel Home will be able to increase its production of locally produced higher-margin value added items.” 

Notio Living acquisition
Dorel Home is also buying Danish-based Notio Living for approximately US$19 million. The company, which markets thousands of products sourced from around the world, has been in the home furnishings business for 25 years and operates throughout Europe with a strong presence in the e-commerce market.

“The Notio Living acquisition provides a tremendous advantage for further European expansion due to its strong distribution network. The combination of Dorel Home’s strong portfolio of products and brands with Notio’s distribution capabilities in mainland Europe will materially augment Dorel Home’s European business,” Schwartz said.

“We currently have a successful presence in the United Kingdom. The addition of Notio Living is an exciting opportunity for the segment to rapidly increase its reach in Europe and we are anxious to get started. Dorel remains fully committed to taking a disciplined approach to value creation as it sees significant upside in its Dorel Home business. Today’s announcements will accelerate our strategy for growth,” he added.

The transaction is subject to customary regulatory approvals and is expected to close later this year. 

Related Story: Dorel Home sees 2Q revenue fall as demand softens

Related Story: Ameriwood launches wall bed line under Signature Sleep brand


TempurPedic Canada
Sealy Canada
This HGO article was written by:
The HGO Merchandiser
Autumn 2021
Autumn 2021
Summer 2021
Summer 2021
Spring 2021
Spring 2021
Winter 2020
Winter 2020

 View all editions of The HGO Merchandiser.

  About HGO

Home Goods Online.ca 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