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Last updated on April 19, 2014 at 18:42 EDT

Dorel to Acquire Majority Interest in a South American Juvenile Products Business

November 3, 2011
        --  Expands the Company's geographic reach and solidifies its
            position as global juvenile industry leader
        --  Transaction expected to close in the fourth quarter
        --  Includes 52 retail stores in Chile and Peru 

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, Nov. 3, 2011 /PRNewswire/ – Dorel Industries Inc. (TSX: DII.B
DII.A) today announced it has significantly increased the presence of
its Juvenile segment in South America by signing a share purchase
agreement to acquire a 70% interest in an existing group of companies,
known principally as Silfa, who own and operate the popular Infanti brand in Chile, Bolivia, Peru and Argentina. The transaction is
expected to close in the fourth quarter, subject to the fulfillment of
certain conditions.

With a history of success, 2010 sales of Silfa were approximately US$58
million and will be immediately accretive to earnings. With this
investment, Dorel will also be entering the juvenile retail business as
the transaction comprises the Baby Infanti chain of 52 specialty shops, of which 40 are in Chile and 12 are in
Peru.

Created in 2002, Infanti is the most popular juvenile products brand in South America and enjoys
a leading position in the market. Its product line is comprised of a
broad variety of items including car seats, strollers, travel systems,
high chairs, play yards, safety products, accessories, pre-school items
and toys. Infanti products cater to all price categories with a focus
on opening to mid price points. In addition to the Infanti line, Silfa
also represents a number of other brands at the wholesale level,
including Dorel’s Maxi Cosi and Safety 1(st). The Baby Infanti retail stores sell a number of Dorel brands as well as several other
well known competitive labels. It is the intention to continue to
develop the business on this current platform.

“We have worked with Silfa for several years and have established a good
working relationship with them. The transaction is intended to extend
our reach in a market which we believe has great growth potential,
provides Dorel with yet another important brand in these new
territories and further solidifies our position as a global leader in
the juvenile industry. Our involvement at the retail level may be new
for Dorel but we are partnering with an excellent group which has
maintained sustained growth for 10 years. This is a most exciting
development for our Company,” stated Dorel President and CEO, Martin
Schwartz.

Dorel Juvenile Segment Group President and CEO, Hani Basile, said the
move into the four new South American countries is part of an on-going
plan for territorial expansion and new market penetration. “With our
previous initiatives in Australia and Brazil, we have developed a
proven business model. We have specifically targeted these South
American regions due to their significant growth potential. We believe
that we have identified a quality partner that will create a winning
formula. In addition, the Baby Infanti chain is a leader in the area
and will provide us with an important strength to better serve our
markets through immediate consumer feedback.”

Silfa CEO, Christian Sitnisky said that he, his partners and the
executive team are delighted with the opportunity to merge their
expertise with Dorel’s. “Dorel is a world-class organization with a
proven record. We were extremely selective in our choice of partners as
we are a very family oriented business that cares deeply about our
personnel, customers, consumers and new product developments. We all
share the same entrepreneurial spirit and see this new venture as an
excellent way to further our growth in Latin America and to develop new
opportunities.”

Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle
company. Established in 1962, 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 1(st), Quinny, Cosco, Maxi-Cosi and B©b© Confort in Juvenile, as well as
Cannondale, Schwinn, GT, Mongoose, 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 is a US$2.3 billion
company with 4700 employees, facilities in nineteen countries, and
sales 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.


Source: PR Newswire