Skip to main content

The Globe and Mail

Dorel buys majority stake in distributors in Colombia and Panama

Dorel CEO Martin Schwartz said the 130 million people in Colombia, Ecuador, Venezuela and Central America are an important emerging consumer base.

CHRISTINNE MUSCHI/REUTERS

Dorel Industries Inc. said Tuesday that it has signed a deal to buy a majority stake in two distributors of infant and children's products in Colombia and Central America.

The purchase price was not disclosed for the companies that had $14-million (U.S.) of sales last year.

Dorel will own 70 per cent of Best Brands Group SA in Panama and Baby Universe SAS in Colombia. The remaining 30 per cent will be held by the Sitnisky family and the current owners of the operations.

Story continues below advertisement

The Sitniskys are Dorel's minority partner in Chile and Peru where they operate the Infanti brand.

The acquisition is expected to be immediately accretive to Dorel's earnings.

Dorel CEO Martin Schwartz said the 130 million people in Colombia, Ecuador, Venezuela and Central America are an important emerging consumer base.

"This is another concrete step in the implementation of Dorel's geographic expansion strategy to grow in new markets with good growth potential," he stated.

"Our Chilean acquisition has been very successful. This move will energize our momentum and accelerate our market share penetration in the near future. It also expands our footprint with the Infanti brand."

Dorel is one of the world's largest manufacturers of juvenile products such as infant car seats and bicycles. It also makes ready-to-assemble furniture.

Its brands include Safety 1st, Quinny, Cosco and Maxi-Cosi, while it also sells bikes under the Cannondale, Schwinn, GT, Mongoose and IronHorse brands.

Story continues below advertisement

Report an error
As of December 20, 2017, we have temporarily removed commenting from our articles. We hope to have this resolved by the end of January 2018. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.