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Dorel to Acquire Juvenile Products Company Tiny Love

January 9, 2014
        --  Complementary product line of innovative baby products and
            developmental toys
        --  Sales in over 50 countries worldwide
        --  Profitable business with strong cash flow



EXCHANGES

TSX: DII.B, DII.A

MONTREAL, Jan. 9, 2014 /PRNewswire/ – Dorel Industries Inc. (TSX: DII.B
DII.A) today announced it has signed a share purchase agreement to
acquire Tiny Love Ltd., a global, multiple award-winning baby products
and developmental toy company headquartered in Tel Aviv, Israel, with
offices located in the U.S. and China. Annual sales for the fiscal year
ended December 31, 2013 were approximately US$45 million. Tiny Love is
profitable and has a strong cash flow. The transaction is expected to
close in the first quarter. The purchase price was not disclosed.



Tiny Love is recognized as an innovator in the developmental toy
category, which comprises products like activity gyms, mobiles, light
gear and toys designed specifically for babies and toddlers, and is a
product line that is complimentary to Dorel’s. Sales are made in more
than 50 countries worldwide, of which 75% are through a worldwide
distributor network and the remainder is in North America through its
U.S. subsidiary. The company has a strong R&D heritage with a focus on
baby development through observational studies of baby behaviour and
the use of third party experts from a local Israeli university.



“We are delighted to be acquiring Tiny Love, a proven and well-known
juvenile products company within our industry. They have growing brand
recognition that is synonymous with child developmental excellence.
With their strong distribution network in diverse markets, this latest
investment further solidifies our position as a global leader in the
juvenile industry and expands the geographies in which we operate. Tiny
Love is particularly strong in Eastern Europe which is an important
part of our growth strategy,” stated Dorel President and CEO, Martin
Schwartz.



Dorel Juvenile Group President & CEO, Jean-Claude Jacomin, added: “With
this acquisition, we are expanding our product line into an area that
complements our existing business and our brand portfolio is further
strengthened. Israel is known as a country that is a leader in research
and development and we expect that our global operations will benefit
from this additional expertise. We are certain this will enhance our
on-going product innovation efforts.”

Tiny Love President Fredy Aboukrat said that the clear strength of the
company is being expert in satisfying both baby’s developmental needs
and those of their parents. This enables them to bring smart,
innovative solutions in baby products and toys.

“We are always on the lookout for the next innovation that will
stimulate baby’s skills and senses and help parents and caregivers
enjoy their time together during those first immensely exciting years.
Original concepts and groundbreaking designs made with love and care
are instantly identifiable as Tiny Love creations. Compromise is not an
option. We are consistently attuned to genuine consumer needs. We
maintain a youthful, enthusiastic company atmosphere that nurtures the
creative spirit which we incorporate with our unwavering commitment to
the highest standards of quality. We see Dorel’s entrepreneurial
culture as the perfect fit and see exciting potential going forward.”

Profile

Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle
company. 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, Caloi, 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$2.6 billion and employs 6,300 people in facilities located in
twenty-four 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 Dorel Industries Inc.


Source: PR Newswire



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