MONTREAL – Canadian furniture giant Dorel Industries and Cerberus Capital Management have agreed to terminate a purchase agreement that would have taken the company private.
Dorel announced it would go private last November, making a deal to sell to a group of buyers made up of family owners, Dorel management, and Cerberus Capital Management.
The offer valued the company at approximately $470 million. Dorel, ranked #16 on the current FDMC 300, manufactures ready-to-assemble home furniture, car seats, strollers, and bicycles.
Independent shareholders ultimately made the decision.
“Independent shareholders have clearly expressed their confidence in Dorel’s future and the greater potential for Dorel as a public entity,” said Martin Schwartz, Dorel president and CEO in a statement. “We sincerely appreciate the considerable time and effort Cerberus has devoted to this project.
“I thank our employees who have maintained an unwavering focus on Dorel’s operations throughout this period. Shareholder value enhancement remains our top priority, and we look forward to continued growth with our excellent brands, worldwide consumer recognition and strong customer relations.”
Dorel Industries Inc. consists of three main business segments: Dorel Juvenile, Dorel Home and Dorel Sports.
The company was negatively affected at the early stages of the COVID pandemic, but has since posted recoveries.
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