Dorel Takes Over Brazil’s Caloi
MONTREAL, Canada – Dorel Industries Inc. today announces it is acquiring a 70% interest in Caloi, the biggest Brazilian manufacturer of bicycles and bicycle equipment with a market share of more than 40%. The Brazilian bike market has an annual volume of about 5 million units.
Dorel Industries states in its press release on the take-over that it paid, “A high single digit multiple of Caloi’s EBITDA. Sales in 2012 were close to BRL 273.5 million (€ 84.1m), a 22% increase over the previous year. The transaction is expected to be immediately accretive to Dorel’s earnings. Brazil will become a production hub for Dorel. Caloi´s factory in Manaus will assemble bikes for the company’s brands, such as Cannondale, Schwinn, Mongoose and GT to serve the Brazilian and export markets.
Largest bicycle brand in Latin America
Established in 1898 in Brazil, Caloi is one of the oldest and most established bicycle brands in the world. It is the largest bicycle brand in Latin America and is the leader in the Brazilian market. Caloi’s portfolio encompasses a full range of bicycles, from high-performance to children’s models, including mountain bikes, urban, recreational and road bikes. Caloi’s products are distributed across the country through a variety of channels, from mass market to independent bicycle dealers.
Tremendous growth ahead
Caloi employs 900 people at its various locations, including its head office in São Paulo, the Technology and Logistics Center in Atibaia and its manufacturing facility in Manaus, which is the largest bicycle manufacturing plant outside Southeast Asia, producing more than 700,000 units per year.
“This new partnership with Caloi positions Dorel as one of the largest bicycle companies in the world, as well as a leader of the Americas,” commented Dorel President & CEO, Martin Schwartz. “We have built this segment into a billion dollar business in just nine years and see tremendous growth ahead. We remain focused on maximizing this sector so that we may continue to enhance shareholder value. We are delighted to welcome the Caloi team to Dorel. Eduardo Musa, current Caloi CEO will become the bicycle segment´s Brazil President and will join our global management team.”