Dutch Pon Group Acquires Dorel Sports For US$810 Million

According to foreign media reports, Dorel Industries has agreed to sell its Dorel Sports bicycle division to Pon Holdings for US$810 million in cash. The merger of Pon.Bike and Dorel Sports will create a world-leading bicycle company with total revenue of approximately 2.5 billion euros (2.9 billion US dollars). The sale is expected to be completed in the first quarter of 2022.

American Dorel Sports is a subsidiary of Dorel Industries, and the parent company of many brands Cannondale, Schwinn, GT and Mongoose. The annual revenue in 2020 is approximately US$1 billion, an increase of 14.9%.

Pon Holdings is a Dutch private group with operations in multiple fields and the parent company of many bicycle brands, including Gazelle, Focus, Kalkhoff, Santa Cruz, Cervélo, Urban Arrow, BBB and Swapfiets. Headquartered in Amsterdam, it has 2,400 employees. Recently achieved sales of 1.5 million euros. The merger with Dorel Sports is mainly to make a breakthrough in the US market.

Janus Smaalbraak, CEO of Pon Holdings, said: “Today’s step is a milestone in the creation of a leading global bicycle company with a variety of premium brands. With the acquisition of Gazelle in 2012, we embarked on a strategy that allows us to step by step The turnover of the bicycle division has increased to 1.5 billion Euros, and major leisure and sports brands own 70% of electronic products. With the acquisition of Dorel Sports, we have now reached a climax. They have a long history with iconic bicycle brands and stay An impressive legacy has been laid. Schwinn is an American institution. Caloi is the pride of Brazil. Cannondale is a truly global brand with a great reputation. Dorel Sports is very suitable for Pon Bike, so this is the logical way. We can Continue to develop high-quality electric bicycles for use in cities, leisure or sports. Cycling is not only good for health, but also plays an important role in mobility transformation. It is one of the most sustainable modes of transportation. We are destined to make bicycles become An important part of mobility. Therefore, we look forward to working with Dorel Sports employees around the world and welcome them to join the Pon family."

Said Martin Schwartz, President and CEO of Dorel. "Based on feedback from our shareholders, Dorel began a thorough review of strategic alternatives earlier this year. Our goal has always been to create value for our shareholders. The divestiture of Dorel Sports represents a unique opportunity that can be leveraged by taking advantage of strong demand To release value for the scale assets in the bicycle field. On behalf of the board of directors, I would like to express my sincere gratitude to the entire Dorel Sports team for their efforts over the years. Since 2004, Dorel Sports has been an important part of our organization, and we provide it globally. We are very proud of the success achieved. Although the decision to sell Dorel Sports is difficult, we believe that this transaction represents the full value of Dorel’s shareholders."