Quebec-based Dorel Industries has signed a definitive agreement to sell its bicycle segment, Dorel Sports, to Dutch transport conglomerate Pon Holdings for $810 million.
The all-cash deal will allow Dorel to reduce debt, return capital to shareholders, and focus on its remaining businesses, which include car seats and home furnishings.
Pon Holdings has built a significant portfolio of bicycle brands over the past decade.
- 2011: Purchased Derby Cycle for $243 million
- 2015: Acquired Santa Cruz Bicycles for an undisclosed amount
- 2018: Purchased a 20% stake in Accell Group, which it sold for $50.9 million in 2020
Dorel Sports, which includes cycling brands Schwinn, GT, and Mongoose, posted $317.3 million in revenue in fiscal Q2, an 11.1% uptick year-over-year. It generated $587.7 million in revenue in the first six months of FY2021, up 24% compared to the first half of the year prior.
Acquiring Dorel Sports will lift Pon’s bike segment to an estimated $2.8 billion in annual revenue, making it the biggest bicycle company in the world.
The combined entity could surpass Giant Bicycles, which generated $2.45 billion in revenue last year.