Saturday, 16 Nov 2024

Bicycle maker Dorel to go private in $354.3 million deal

(Reuters) – Canadian bicycle maker Dorel Industries Inc DIIb.TO said on Monday it has agreed to be taken private by a group led by private equity firm Cerberus Capital Management in a deal valued at about C$470 million ($354.3 million).

Shares of Dorel were up 3.5% at C$14.90 in afternoon trade.

Under the terms of the deal, affiliates of Cerberus and the family shareholders of Dorel will pay C$14.50 apiece for shares of the company that the family does not currently hold.

The offer price represents a premium of about 1% to stock’s last close on Friday.

The family shareholders include Dorel’s Chief Executive Officer Martin Schwartz and Chief Financial Officer Jeffrey Schwartz, among others.

The family shareholders currently own 19.18% of Dorel’s stock on an economic basis and 60.17% on a voting basis, according to the statement.

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