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Dorel Significantly Increases its Sponsorship Commitment with Liquigas Pro Cycling

September 30, 2010

Cannondale bikes becomes Co-Sponsor

    EXCHANGES
    TSX: DII.B, DII.A

MONTREAL and BETHEL, CT, Sept. 30 /PRNewswire-FirstCall/ – The Cycling Sports Group (CSG) Division of Dorel Industries (TSX: DII.B, DII.A) is significantly ramping up its partnership with Liquigas Sports S.p.A. Effective January 1, 2011 Cannondale will be the Co-Sponsor of the Liquigas Pro Cycling Team. Cannondale has been a Technical Bicycle Sponsor for the past four years and team members have been riding Cannondale bikes since that time. “This additional investment underlines our recognition and respect for the accomplishments of the Liquigas team and is a further meaningful commitment to the Cannondale brand,” stated Dorel President and CEO, Martin Schwartz.

Liquigas has had a remarkable year. The Cannondale SuperSix Hi-Mod has powered team members to take the top spot in two of the three major Grand Tours. Ivan Basso won the Giro d’Italia, Vincenzo Nibali recently captured the Vuelta a Espana. Additionally, Peter Sagan came second in the UCI Grand Prix Cycliste de Montreal. The SuperSix Hi-Mod is the flagship of Cannondale’s outstanding road bike line.

As of January 1st, the official team name will be Liquigas-Cannondale; Cannondale will appear prominently on team jerseys, which are being designed by Dorel’s SUGOI division; as well, there will be better logo placement for Cannondale on Liquigas-Cannondale team vehicles, website and team clothing. There will be significant marketing integration between Cannondale and the team in order to showcase team riders and wins as well as capitalize on consumers’ interests in pro-cycling.

“Coming off a solid 2010 season, we felt there was no better time for Dorel to expand its partnership with Liquigas. We are committed to building our bicycle business into a global force and this is an important investment for us as we further this objective. Cannondale sales have grown significantly this year. Our new models have been enthusiastically embraced by consumers and we have increased the number of dealers in the Cannondale network. There remain ample growth opportunities for this premium brand and we will remain highly proactive to ensure that the profitability of this division continues to increase,” commented Mr. Schwartz.

Robert Baird, Group President and CEO of Dorel’s Recreational/Leisure Segment said the new arrangement is the logical evolution of a partnership that was founded on the tradition of combining world-class cyclists and best-in-class bicycles. “For more than forty years, Cannondale has led the bicycle industry with cutting-edge technology. An important part of the Cannondale product development process is feedback from our team riders. The Liquigas team provides us with product feedback that helps us ensure that more cyclists of all skill levels look to Cannondale for their cycling needs. We look forward to building our relationship with Liquigas and continuing to produce the best bicycles for cyclists around the world.”

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 1st, Quinny, Cosco, Maxi-Cosi and Bebe 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 furniture products, both domestically produced and imported. Dorel is a US$2 billion company with 4500 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: newswire



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