Dorel reaches privatization deal with Cerberus and controlling family

Dorel President and CEO Martin Schwartz attends the company's annual meeting in Montreal, on May 28, 2004. Dorel Industries is set to purchase Lerado Group for U.S. $120 million.

Dorel Industries Inc. says it has reached an agreement in principle to be taken private by a group led by Cerberus Capital Management and the family that controls the company's multiple-voting shares.

Under the proposal, which values the company at approximately $470 million, the buyers will pay $14.50 per share for the shares the family does not already hold.

Shares in Dorel, which owns brands in the juvenile, sports and home furnishings markets, have been moving higher in recent months. The company's subordinate voting shares closed at $14.39 on the Toronto Stock Exchange on Friday.

The family shareholders hold 19.18 per cent of Dorel's outstanding shares on an economic basis and 60.17 per cent on a voting basis.

They told the Dorel board in December 2019 that they planned to seek a partner for a potential privatization of the company and have said they are not interested in any alternative transaction.

The family shareholders include Dorel chief executive Martin Schwartz, and chief financial officer Jeffrey Schwartz as well as Alan Schwartz, the company's executive vice-president operations, and Jeff Segel, executive vice-president sales and marketing.

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