JANUARY 13, 2004 Pacific Cycle Acquired By Dorel Industries
Pacific Cycle announced that it is being acquired by Montreal-based Dorel Industries Ltd. (TSX: DII.A, DII.B: NASDAQ: DIIBF), a global supplier of juvenile and home furnishing products. Dorel has signed a purchase agreement to acquire the Madison-based Pacific Cycle, a leader in the design, marketing and distribution of high quality, branded bicycles and other recreational products. Chris Hornung, Founder and Chief Executive Officer of Pacific Cycle, will remain at the head of Pacific Cycle, and will run the company as a standalone Dorel division.
Best known for its Schwinn, Mongoose and GT bicycle brands, Pacific Cycle sells more bicycles than any other company in North America. Its powerful brand portfolio serves virtually all consumer demographics, price categories and bicycling styles. Hornung said that the acquisition begins another exciting chapter in the company’s corporate history. “This Acquisition provides numerous opportunities to significantly strengthen Pacific Cycle’s position as a branded consumer products company with world-class sourcing and distribution. It supports the entrepreneurial spirit that is intrinsic to Pacific Cycle’s success throughout our 27-year history.”
“I am very proud of Pacific Cycle and of the people who have worked together to make Pacific Cycle one of the largest bicycle companies in the world. We will continue to grow Pacific with the additional resources Dorel Provides,” said Hornung. “Our business model is very similar to that of Dorel’s and this transaction provides a larger resource base to significantly strengthen our position as a global consumer product leader.”
About Pacific Cycle
Established in 1977, Pacific Cycle, LLC is the nation’s number one supplier of quality bicycles. It designs, markets and imports a full range of bicycles and recreation products under the brand names of Schwinn, GT, Mongoose, Mongoose Pro, Pacific InSTEP, Roadmaster, Flexible Flyer, Powerlite, Murray and Dyno. Pacific Cycle is headquartered in Madison, Wisconsin with offices in Olney, Illinois, and Vacaville, California, and a design/test center in Longmont, Colorado.
About Dorel
Dorel Designs, markets and distributes brand name consumer products globally. It specializes in two market segments: juvenile products and home furnishings. Dorel’s extensive product offering includes juvenile products such as infant care seats, strollers, high chairs, toddler beds, cribs, infant health and safety aids, play-yards and juvenile accessories; home furnishings such as a wide variety of Ready –to-Assemble (RTA) furniture for home and office use as well as metal folding furniture, futons, step stools, ladders and other imported furniture items.