http://www.cbc.ca/money/story/2008/02/04/cannondales.html
Dorel Industries Ltd. said Monday it is buying U.S. bike maker Cannondale Bicycle Corp. for up to $200 million US in cash.
Montreal-based Dorel said the deal also includes Sugoi Performance Apparel.
Sales last year for Cannondale and Sugoi totalled about $200 million, and Dorel expects the acquisition will immediately boost its bottom line.
The purchase price will range from $190 million US to $200 million US, depending on Cannondale's results for the fiscal year that ends June 30.
The seller of Bethel, Conn.-based Cannondale is a division of Pegasus Capital Advisors, which bought the bike company in 2003. Cannondale has been in business since 1971.
Dorel was already a player in the bike market, as it owns Pacific Cycle, which markets brands including Schwinn, Mongoose and GT. Dorel also sells home furnishings and children's products.
Investors responded by sending Dorel's Class B shares up more than nine per cent in trading on the TSX. The stock was up $2.75 at $32. The issue has a one-year high of $40.49, and a one-year low of $25.86.
Dorel Industries Ltd. said Monday it is buying U.S. bike maker Cannondale Bicycle Corp. for up to $200 million US in cash.
Montreal-based Dorel said the deal also includes Sugoi Performance Apparel.
Sales last year for Cannondale and Sugoi totalled about $200 million, and Dorel expects the acquisition will immediately boost its bottom line.
The purchase price will range from $190 million US to $200 million US, depending on Cannondale's results for the fiscal year that ends June 30.
The seller of Bethel, Conn.-based Cannondale is a division of Pegasus Capital Advisors, which bought the bike company in 2003. Cannondale has been in business since 1971.
Dorel was already a player in the bike market, as it owns Pacific Cycle, which markets brands including Schwinn, Mongoose and GT. Dorel also sells home furnishings and children's products.
Investors responded by sending Dorel's Class B shares up more than nine per cent in trading on the TSX. The stock was up $2.75 at $32. The issue has a one-year high of $40.49, and a one-year low of $25.86.
