Canada's Dorel Snags Major Slice Of Rival Brazilian Bike Co.

Law360, New York (August 22, 2013, 3:36 PM EDT) -- Canadian bicycle manufacturer Dorel Industries Inc. will take a majority stake in Brazilian rival Caloi to help it bring its business, best known for the popular Cannondale and Schwinn brands, to high-potential markets outside of North America, the company said on Thursday.

The companies did not put a price on the transaction, saying only that the consideration is a high single-digit multiple of Caloi's earnings before interest, taxes, depreciation and amortization.

Dorel's buy gives it a more prominent place in one of Latin America's crown-jewel economies...
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