Last updated on April 16, 2014 at 1:21 EDT

Dorel Continues Push into Latin America

September 25, 2012

Purchases juvenile products businesses in Central America and Colombia


MONTREAL, Sept. 25, 2012 /PRNewswire/ – Dorel Industries Inc. (TSX:
DII.B, DII.A) today announced that it is further increasing its
presence in Latin America by acquiring a 70% interest in two juvenile
product businesses that sell to customers in Colombia and Central
America. The acquisition will expand Dorel’s ownership of the highly
popular Infanti brand to which Dorel already owns the rights in Chile, Bolivia, Peru
and Argentina.

Dorel will operate Best Brands Group SA (“Best Brands”), in Panama and
Baby Universe SAS (“Baby Universe”) in Colombia.  The remaining 30%
interest will be held by the Sitnisky family and the current owners of
the newly acquired operations. The Sitniskys are Dorel’s current
partners in Chile and Peru, holding 30% of Dorel’s operations there. 
With 2011 sales of US$14 million, the acquisition is expected to be
immediately accretive to earnings.  The purchase price was not

“With a population base nearing 130 million people, Colombia, Ecuador,
Venezuela and Central America are growing markets in importance which
offer mid-term potential from an emerging consumer base.  This is
another concrete step in the implementation of Dorel’s geographic
expansion strategy to grow in new markets with good growth potential. 
Our Chilean acquisition has been very successful.  This move will
energize our momentum and accelerate our market share penetration in
the near future. It also expands our footprint with the Infanti brand,” commented Martin Schwartz, President and CEO of Dorel.

“With the solid partnership that we have with the Sitnisky family
together with Dorel’s resources and large scale, we firmly believe this
is the right way to succeed in Latin America,” concluded Mr. Schwartz.

Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle
company. Now in its 50(th) year, 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 Bébé 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 has annual sales of
US$2.4 billion and employs 5,000 people in facilities located in
twenty-two countries 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: PR Newswire