MONTREAL — Dorel Industries Inc.'s board of directors has determined that the company is in serious financial difficulty and has entered into a sales-lease back of one of its facilities in an effort to improve Dorel’s financial position

Dorel entered into the transaction for its factory and warehousing facility in Columbus, Indiana. The gross proceeds to Dorel from the sale will be $30 million, of which approximately $8 million will be allocated to reduce existing debt, with the balance designated for funding the company’s ongoing operations. The company is an FDMC300 listing company, ranking #26 with $558.97 million in sales. 

The lease has an initial term of ten years and may be renewed at the company’s option for two renewal terms of five years each. The initial annual rent is approximately $2.9 million, subject to annual increases. The obligations of the lessee Dorel Juvenile Group Inc. are not guaranteed by Dorel Industries Inc., its parent company. This transaction is part of the company's initiative to finance the growth of its Juvenile segment and the turnaround of its Home segment, as announced on January 30, 2025. The company is diligently exploring additional opportunities to enhance its financial position further.

Each of Martin Schwartz, Jeffrey Schwartz and Jeff Segel, directors and executive officers of Dorel, and Alan Schwartz, an executive officer of Dorel, has an ownership interest in the purchaser/lessor of the facility in Columbus, Indiana. 

Dorel’s Board of Directors approved the transaction and determined, among other things, that Dorel is in serious financial difficulty and the transaction is designed to improve Dorel’s financial position.

Dorel will file a material change report concerning the transaction on SEDAR+. Dorel will not file the material change report at least 21 days before the transaction's closing date as the terms and conditions of the transaction were only recently finalized. In Dorel’s view, the shorter period is necessary to permit Dorel to close the transaction on a timely basis to improve its financial position.