Dorel Industries has sold its Dorel Sports division to Pon Holdings in a deal worth $810m. The acquisition of Dorel Sports sees Pon Holdings become the largest bicycle and e-bike company in the world, exceeding Giant Bicycles.
The merger will see Cannondale, GT, Caloi and Mongoose, among others, join brands such as Gazelle, Cerevélo, Focus, Santa Cruz, Kalkhoff and Urban Arrow in Pon Holdings' portfolio.
Pon Holdings CEO Janus Smalbraak said: “Today’s step is a milestone in the creation of a world-leading bike company with a variety of quality brands.
"With the acquisition of Gazelle in 2012, we launched a strategy that step by step led us to the $1.5 billion in revenue bike group that we are today, with great comfort and performance bicycle brands, of which 70 per cent are electric. As a result of this strategy, we have now reached a highlight with the acquisition of Dorel Sports.
“Dorel Sports really is complementary to Pon Bike and that’s why this is such a logical step. Together we can further cater the ever growing demand for quality and electric bikes, whether it’s for urban use, leisure or sports.
"Cycling is not only healthy, it also plays a critical role in fighting inner-city congestion. It’s one of the most sustainable ways of transport. We are determined to make bikes a powerful part of mobility.”
The takeover also sees Pon Holdings acquire a second production location in the Netherlands, where the company is based. Furthermore, Dorel Sports brands, such as Cannondale and Schwinn, provides Pon Holdings greater access to the American market, while Brazil based Caloi opens up access to South America.
Dorel Industries' decision to sell Dorel Sports comes after the company decided to focus further on other aspects of their business.
Martin Schwartz, Dorel President and CEO, said: “Acting on feedback from our shareholders, Dorel embarked on a thorough review of strategic alternatives earlier this year. The divestiture of Dorel Sports represents a unique opportunity to unlock value by capitalizing on strong demand for scaled assets in the bicycle segment.
“On behalf of the Board of Directors, I extend my sincere thanks to the entire Dorel Sports team for their outstanding efforts over the years. Dorel Sports has been an important part of our organization since 2004 and we are very proud of the global success it has achieved."
The sale is expected to close during the first quarter of 2022.
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