Canadian Dorel Industries has terminated the going-private agreement between itself and an affiliate of funds managed by Cerberus Capital Management as buyer by mutual consent. As a result, the planned going-private transaction is a thing of the past. The agreement provided that the above-mentioned buyer would pay Dorel shareholders a purchase price of C$16.00 (€10.42-$12.64) per share in cash (excluding shares owned by the family of Dorel’s president and CEO, Martin Schwartz). This offer had previously been increased from C$14.50 to C$16.00.
The termination of the arrangement agreement was preceded by exchanges and discussions between Dorel and many of its shareholders. It was unanimously approved by the Dorel board of directors on the unanimous recommendation of the special committee, which is composed of Dorel’s six independent directors.
According to Dorel, the announced decision clearly expresses the independent shareholders’ confidence in Dorel’s future “and the greater potential for Dorel as a public company market through its Dorel Sports division.”
With its Dorel Sports division and its Cycling Sports Group (CSG, which includes the Cannondale, Fabric, GT brands, etc.) and Pacific Cycle Group (PCG, with brands Ironhorse, Schwinn, etc.), Dorel is well positioned in the global bicycle and e-bike market.