Dorel Industries Inc. has announced that it has completed the previously announced acquisition of Hong Kong-based Lerado Group’s juvenile business. The purchase price was $120 million, Dorel reported.
The company funded the purchase from the proceeds of its successful offering of $120 million of extendible convertible unsecured subordinated debentures, Dorel asserted.
Benefits of the acquisition, according to Dorel, include quicker additional operational flexibility and autonomy in a changing competitive landscape, the ability to move product to market faster, vertical integration of production capabilities, simplification of supply chain management, additional research and development capabilities, and enhancement of profitability. The company also noted that the acquisition gives Dorel its first company-owned factories in Asia, including four extensive, modern facilities.
“This acquisition will improve Dorel juvenile’s value chain and is a sound investment in our future,” Dorel president and CEO Martin Schwartz, said in announcing the transaction. “Lerado Juvenile will ensure that we continue to further grow our industry leadership, and it will augment profitability within the second year of operations.