Bicycle and furniture maker Dorel Industries Inc. has bought a pair of U.K.-based cycle distributors, extending the company's reach into the British market.
Montreal-based Dorel said Thursday it has acquired assets of Hot Wheels and Circle Bikes, which distribute the Canadian company's Mongoose and GT brands in Britain. Financial terms of the deal were not disclosed.
Dorel said it will create a new subsidiary, Cycling Sports Group UK, or CSG UK, to drive future growth of the Mongoose and GT brands.
"We have developed a multifaceted strategy to grow our bike business into a global force and we are moving ahead decisively with this plan by leveraging our excellent portfolio of recognized brands and by investing in leaders in their respective markets," Robert Baird, president of Dorel's recreational and leisure segment, said in a statement.
"CSG UK will now be that much closer to the market and will react quickly to both dealer and consumer demands."
Hot Wheels owns a portfolio of bicycle products and components marketed to retail and leisure outlets throughout the U.K. Circle Bikes owns the popular Charge brand of bike.
The companies had combined sales for the fiscal year ended in Aug. 31 of about $22.4-million (U.S.).
The British acquisition follows Dorel's purchase in August of Australia-based Gemini Bicycles and the creation of a new subsidiary called Cycling Sports Group Australia.
Dorel is a maker of juvenile products that has recently branched out into Bicycles. The company also has a home furnishings division.