MONTREAL — The Canadian Press Published on Thursday, Jun. 26, 2008 12:47PM EDT Last updated on Monday, Mar. 30, 2009 3:58PM EDT
Dorel Industries Inc.'s Pacific Cycle division has purchased U.S. parts manufacturer PTI Sports for $28.1-million (U.S.).
Montreal-based Dorel said Thursday that the acquisition of the second-largest bicycle parts and accessories company in the United States fits with its strategy of aggressively growing its bicycle and juvenile products businesses.
Dorel said the acquisition will be immediately accretive to earnings.
PTI recorded $65-million of sales and adjusted earnings of $5-million in fiscal 2007.
Established in 1991, PTI Sports products are sold in key mass and sporting goods retailers throughout North America. Its brands include Schwinn, Mongoose, Disney, Nickelodeon, Mattel (Polly) Master Lock, Thomas the Train and The Discovery Channel.
Pacific Cycle and PTI Sports have had a licence agreement for Schwinn and Mongoose parts and accessories since 2002.
It is also No. 2 in the U.S. bicycle helmet market.
In February, Dorel purchased Cannondale bicycles and SUGOi fitness apparel for its high-end independent bicycle category.
The PTI acquisition will have no impact on that acquisition, but fits well with Pacific Cycles' mass merchant division, said Dorel chief executive officer Martin Schwartz.
“We can now go to the major chains and offer integrated buying with both bicycles and bike accessories,” he said in a news release.
Dorel has 4,600 employees and facilities in 17 countries.
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