(Montreal) Dorel Industries announced on Tuesday that it has completed the sale of its sports division, behind bicycle brands Cannondale, Mongoose and Schwinn, to Dutch group Pon Holdings for US $ 810 million.
Dorel said it obtained net proceeds of approximately US $ 735 million upon closing of the transaction.
The Montreal-based company will use approximately US $ 390 million of this amount to pay its shareholders a special dividend of US $ 12 per share. This will be paid on 1er February to shareholders of record on January 18.
The remainder of the proceeds from the transaction announced in October will be used to reduce the company’s debt.
Dorel’s decision to sell its sports division followed a “deep” strategic review that began in early 2021.
Dorel said this fall that the transaction would allow it to focus on growing the businesses of its two remaining divisions, furniture and juvenile products. These activities face some challenges related to inflation and pressures on supply chains.
These two remaining divisions are not for sale, had then specified the management of Dorel.