Montreal, July 15, 2009---Dorel Industries Inc. (TSX: DII.A, DII.B;) today announced that it has acquired certain assets of Iron Horse Bicycles, including inventory, various trademarks and trade names, as well as the "Iron Horse" brand, in a transaction valued at US$5.2 million. The assets were acquired in a bankruptcy auction by Iron Horse’s secured lender following that company's decision to suspend operations for financial reasons.
Iron Horse, marketed throughout North America and internationally, is best known for its downhill and extreme trail bikes. Founded in 1987 in New York, Iron Horse Bicycles quickly established themselves as a market force. They gained their reputation with lightning-quick and superb handling bikes that placed them on the international racing stage. Iron Horse has carried a strong roster of professional athletes, including: Dave Cullinan, Kim Sonier, Penny Davidson, Toby Henderson, Leigh Donovan, "Pistol" Pete Loncarevich and Sam Hill. In addition to downhill and extreme trail bikes, Iron Horse products range from mountain bikes, road bikes, and comfort bikes to juvenile bikes and hybrids.
Iron Horse has also received numerous accolades, including the 2003 Mountain Biking Magazine’s “Bike of the Year” award. The brand is recognized as one of the best in the industry. Sales in 2008 were US$25 million globally.
The transaction adds yet another highly recognized name to Dorel’s portfolio. “Adding Iron Horse to our stable of existing world-class bicycle brands, such as Cannondale, Schwinn, GT and Mongoose, brings depth to our mountain bike offerings,” said Robert Baird, President of Dorel’s Recreational/Leisure segment. “With growing interest in mountain biking and racing, the addition makes Dorel better suited to reach new retailers and, in turn, consumers.”
“This latest purchase is in line with the strategic road map we have developed to build our bicycle business into the leading global bicycle company,” stated Dorel President and CEO, Martin Schwartz. “While their 2008 sales were US$25 million, we are confident we can significantly grow this number. Iron Horse is another excellent brand that we will be able to leverage through our vast resources. The purchase price was most favourable and we look forward to an excellent return on this investment.”