Dorel Industries accepts Cerberus-led offer to go private for $14.50 per share
Dorel Industries said Friday its board has agreed to a deal that will take the Montreal-based company private.
Under the agreement, a group led by an affiliate of Cerberus Capital Management LP will buy Dorel for $14.50 per share in cash, except for shares owned by members of the Schwartz family, including Dorel's chief executive officer. The deal values the company at $470 million.
Dorel's subordinate B shares traded at $14.42 on the Toronto Stock Exchange after markets opened Friday, up 3 cents from the previous close.
"We are pleased to have been able to reach this agreement with the buyer group at a time when Dorel is benefiting from increased demand for its products amid the unique backdrop of 2020," said Norman Steinberg, who chaired the board committee reviewingthe deal, in a statement.
"The special committee believes that the arrangement represents fair value for the public shareholders and is the best path forward for Dorel and all of its stakeholders."
Dorel makes a variety of consumer goods such as Cosco and Safety 1st child car seats, Cannondale and Schwinn bicycles, and home furniture under brands such as Dorel Living and DHP.
-- this report by The Canadian Press was first published Nov. 13, 2020.