January 8/15 10:48 am - Dorel Expands Into Chile & Purchases Local Bike Company

Posted by Editor on 01/8/15
 

Canadian-based Dorel Industries Inc. (TSX: DII.B DII.A) has announced the launch of another new initiative in South America, Dorel Sports Chile S.A. Based in Santiago de Chile, Dorel Sports Chile will lead all sales, marketing, distribution and customer service of all Dorel Sport's (formerly Dorel Recreational/Leisure) brands, including Cannondale, GT, Schwinn, Mongoose, SUGOI and Caloi in Chile and Peru. Dorel Sports Chile will continue to build on Dorel's strategy for geographic expansion and market leadership in its two core businesses in South America.

Dorel also announced today the acquisition of the assets of Intercycles, a Santiago-based bicycle retailer.  A long-time distribution partner of Dorel Sports, Intercycles will be an integral part of Dorel Sports Chile, with the new division operating Intercycles' retail location.

Dorel Sports Chile will combine the extensive marketing, logistical and distribution expertise of Dorel's existing juvenile operations in Chile with Intercycles' market specific bicycle knowledge and Dorel Sport's global brand expertise.  In addition to selling direct to mass retailers, sporting goods and independent bicycle dealers (IBDs), Dorel Sports Chile will expand the Intercycles retail concept to various locations across the region.

"The launch of Dorel Sports Chile provides an excellent opportunity to build on our presence in these areas where there is significant growth potential for the bicycle industry. We are already well-established in Brazil with Caloi.  In addition, we are associating with our existing juvenile partners in Chile.  The relationship established with them in 2011 has been most beneficial and with their strong marketing expertise and local connections, we are well positioned for further growth in South America," commented Martin Schwartz, Dorel President and CEO.