About Dorel Industries

Dorel Industries Inc. provides home products, juvenile products and bicycles. The company’s product offering includes home items, such as various Ready-to-Assemble (RTA) furniture for home and office use, as well as folding furniture, futons, mattresses, children’s furniture, step stools, hand trucks, specialty ladders, outdoor furniture and other imported furniture items; juvenile products, such as infant car seats, strollers, high chairs, playpens, swings, developmental toys and infant health and safety aids; and in Dorel Sports, items, such as bicycles, children’s electric ride-ons, electric bikes and bicycle trailers, as well as related parts and accessories. Dorel Home, with its e-commerce platform, markets an assortment of domestically produced and imported furniture. Dorel Juvenile’s powerfully branded products include worldwide brands, such as Maxi-Cosi, Quinny and Tiny Love, complemented by regional brands, such as Safety 1st, Bebe Confort, Cosco and Infanti. Dorel Sports brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. As of December 31, 2019, the company operated in 25 countries. Operations in the United States include Ameriwood Home (Ameriwood), which markets RTA furniture products under the Ameriwood, System Build, Altra and Ridgewood brands; Cosco Home & Office (Cosco), which markets home/office products under the Cosco brand; Dorel Juvenile U.S., which markets the Safety 1 st, Cosco and MaxiCosi brands, as well as Disney under licensing agreements; Cycling Sport Group (CSG), which markets the premium-oriented Cannondale and GT brands; and Pacific Cycle, which markets various brands, including Schwinn, Mongoose, Roadmaster, IronHorse, InStep and Kid Trax. In Canada, the company operates Dorel Juvenile Canada, Ridgewood Industries, DHP Furniture and CSG Canada. CSG also has operations based in Switzerland, the Netherlands, Japan, Chile and the United Kingdom. Dorel Juvenile Europe principally markets juvenile products throughout Europe, primarily under the Maxi-Cosi, Quinny, Safety 1st, Tiny Love and Bebe Confort brands. Dorel Home Europe is located in the United Kingdom, and designs and distributes furniture mainly in the home office and audio-visual categories, including the Alphason brand. Dorel Juvenile Australia assembles and/or distributes its products under both national brands and local brand Mother’s Choice, and serves Australia and New Zealand with sales to both large retailers and specialty stores. The greater East Asian market is serviced through a network of third-party distributors. Dorel Juvenile Brazil manufactures car seats locally and imports other juvenile products, such as strollers under local brands Infanti and Voyage, as well as the company’s international brands, such as Safety 1st, Cosco, Maxi-Cosi and Quinny. Dorel Juvenile Chile has operations in Chile and Peru, and also sells to customers based in Bolivia and Argentina. Dorel Juvenile Chile operates approximately 90 retail locations in Chile and Peru of which the majority are under the Infanti banner and sell multiple ranges of juvenile products, including non-Dorel owned brands. The principal Dorel brand sold by Dorel Juvenile Chile is Infanti, sold across multiple products and price ranges, with a focus on opening to mid-price points. Dorel Juvenile Chile also distributes products to Colombia, Panama and other Caribbean countries through a local distributor. In addition, the company operates various factory outlet retail locations in Europe and Australia. Dorel Juvenile Mexico serves that market by selling the company’s worldwide brands. The company also owns Caloi, a major Brazilian manufacturer of bicycles and bicycle equipment, which markets the Caloi brand and assembles bicycles for the company’s brands, such as Cannondale, Schwinn, Mongoose and GT to serve the Brazilian and export markets. In Asia, the company serves the Chinese market through its Dorel Juvenile China domestic operation based in Shanghai and sells primarily the Maxi-Cosi and Safety 1st brands. Dorel Juvenile China’s factory headquarters are in Zhongshan and comprises two manufacturing facilities that supply all Dorel divisions, as well as third-party customers outside of China. In addition, the company has other offices in mainland China and Taiwan to oversee the sourcing, engineering and logistics of raw materials and finished goods. The company’s channels of distribution vary by segment, but overall, its primary customers are major retail chains and Internet retailers. The retail chains include mass merchant discount chains, department stores, club format outlets and hardware/home centers while the Internet retailers consist of both mass merchant sites, such as Walmart.com and pure Internet retailers, such as Amazon. Within Dorel Juvenile, sales are also made to independent boutiques and juvenile specialty stores. In Dorel Sports, the Independent Bike Dealer (IBD) network is a primary channel, along with sporting goods chains. The company also owns and operates approximately 90 retail stores in Chile and Peru, as well as various factory outlet retail locations in Europe and Australia. Segments The company operates in three segments: Dorel Home, Dorel Juvenile, and Dorel Sports. Dorel Home Dorel Home operates in the North American furniture and mattress industry. The company is a major North American furniture manufacturer, marketer, and importer. The company is also a primary manufacturer of RTA furniture in North America. Products are distributed from the company’s North American manufacturing locations, as well as from various distribution facilities. Dorel Home consists of four operating divisions. They are Ameriwood, Cosco, DHP, and Dorel Home Europe. Ameriwood specializes in domestically manufactured RTA furniture and is headquartered in Wright City, Missouri. Ameriwood’s manufacturing and distribution facilities are located in Tiffin, Ohio, Savannah, Georgia, Dowagiac, Michigan and Cornwall, Ontario. Ameriwood also has an import division, Altra Furniture (Altra). Altra is also located in Wright City, Missouri; and designs and imports furniture mainly within the home entertainment and home office categories. Cosco is located in Columbus, Indiana and the majority of its sales consist of folding furniture, step stools, hand trucks, specialty ladders and outdoor furniture. DHP is located in Montreal, Quebec, and is a major manufacturer and importer of quality futons, mattresses and bedroom furniture; it also imports upholstery, kitchen, nursery, and dining room furniture. DHP was created through the combination of Dorel Home Products and Dorel Living in 2019. Dorel Home Europe is located in the United Kingdom and designs and distributes furniture mainly in the home office and audio-visual categories, and includes the acquired Alphason brand. Major distribution facilities are also located in Quebec, California and Georgia. Sales are concentrated with Internet retailers, mass merchants, warehouse clubs, home centers and office and electronic superstores. Online sales represent a major portion of Dorel Home revenue and it has made various investments in this channel. Dorel Home markets its products under generic retail house brands, as well as under a range of branded products, including Ameriwood, Altra, System Build, Ridgewood, DHP, Dorel Fine Furniture, Dorel Living, Signature Sleep, Cosmo Living, Novogratz, Little Seeds, Baby Relax, Cosco and Alphason. Dorel Juvenile Dorel Juvenile manufactures and distributes products, such as infant car seats, strollers, high chairs, playpens, swings, developmental toys, and infant health and safety aids. The Maxi-Cosi, Quinny and Tiny Love brands are sold worldwide in majority of Dorel Juvenile’s markets. Other brands, such as Safety 1st, Bebe Confort, Cosco, Mother’s Choice and Infanti are primary regional brands and Dorel Juvenile is able to address all price points with its range of brands and products. In addition, sales are made under licensed brands, such as Disney, principally in North America. Sales are also made to customers under their own house brand names. Dorel Juvenile has divisions in North America, Europe, Latin America, China, Israel, Australia and New Zealand. In total, Dorel Juvenile sells product to approximately 100 countries worldwide. The head office of Dorel Juvenile U.S. is in Foxboro, Massachusetts. With the exception of car seats, the majority of its products are conceived, designed and developed at the Foxboro location. Manufacturing and warehousing operations are based in Columbus, Indiana where car seat development is centralized at the company’s Dorel Technical Center for Child Safety. Additional West Coast warehousing is in Ontario, California. Dorel Juvenile Canada is based in Toronto, Ontario and sells to customers throughout Canada. The principal brand names sold in North America are Safety 1st, Cosco, Tiny Love and Maxi-Cosi. In North America, the majority of juvenile sales are to primary retailers, such as mass merchants, Internet retailers and department stores. Dorel Juvenile’s premium brands and product designs are a focus for the sale of medium to higher price points available at smaller boutiques and specialty stores. The company is a major juvenile products company servicing the North American market. Dorel Juvenile Europe’s head office, as well as its major product design facilities, are located in Helmond, the Netherlands. Sales operations along with manufacturing and assembly facilities are located in France, the Netherlands and Portugal. In addition, sales and/or distribution subsidiaries are located in Italy, Spain, the United Kingdom, Germany, Belgium, Switzerland and Poland. Dorel Juvenile Europe markets its products primarily under the brand names, such as Maxi-Cosi, Quinny, Safety 1st, Tiny Love and Bebe Confort. In Europe, the company sells the majority of its products across the mid-level to high-end price points. With its brand names, superior designs and product quality, the majority of European sales are to major European juvenile product retail chains, Internet retailers, independent boutiques and specialty stores. The company is a primary juvenile products company in Europe. In Latin America, Dorel Juvenile has operating locations in Brazil, Chile, Peru and Mexico. Dorel Juvenile Brazil, a major juvenile products company in the country, manufactures car seats locally and imports other juvenile products, such as strollers. Brands sold in Brazil include local brands Infanti and Voyage, as well as the company’s international brands, such as Safety 1st, Cosco, Maxi-Cosi and Quinny. Dorel Juvenile Chile has operations in Chile and Peru, and also sells to customers based in Bolivia and Argentina. Dorel Juvenile Chile operates approximately 90 retail locations in Chile and Peru, and sells multiple ranges of juvenile products and toys, including non-Dorel owned brands. The majority of these stores are under the Infanti banner. The principal Dorel brand sold by Dorel Juvenile Chile is Infanti, sold across multiple products and price ranges, with a focus on opening to mid-price points. Dorel Juvenile Chile also distributes products to Colombia, Panama and other Caribbean countries through a local distributor. In Asia, the company serves the Chinese market through its Dorel Juvenile China domestic operation based in Shanghai and sells mostly the Maxi-Cosi and Safety 1st brands. Dorel Juvenile China’s factory headquarters are in Zhongshan and comprises two manufacturing facilities that supply all Dorel divisions, as well as third-party customers outside of China. Dorel Juvenile Australia assembles and/or distributes its products under both national brands and local brand Mother’s Choice and serves Australia and New Zealand with sales to major retailers and specialty stores. The East Asian market is serviced through a network of third party distributors. Tiny Love is based in Tel Aviv, Israel and is recognized as an innovator in the developmental toy category, which comprises products, such as activity gyms, mobiles, light gear and toys designed primarily for babies and toddlers. As one of the company’s worldwide brands, Tiny Love sells products in approximately 70 countries worldwide, both through the company’s subsidiaries and through a worldwide distributor network. Dorel Sports Dorel Sports includes bicycles, children’s electric ride-ons, electric bikes and bicycle trailers, as well as related parts and accessories. Dorel Sports’ worldwide headquarters are in Wilton, Connecticut. There are also primary operations in Madison, Wisconsin and Bentonville, Arkansas. Additionally in the U.S., distribution centers are located in California, Georgia and Illinois. European operations are headquartered in Oldenzaal, the Netherlands with additional offices in Switzerland, Germany and the United Kingdom. Brazilian operations, through Caloi, are headquartered in São Paulo, Brazil with manufacturing facilities in Manaus, Brazil. Worldwide, there are sales and distribution companies based in Japan and Chile. There is a sourcing operation based in Taiwan established to oversee Dorel Sports’ Asian supplier base and logistics chain. The IBD retail channel and sporting goods and outdoor specialty retailers are serviced by CSG, which focuses on this category, principally with the premium-oriented Cannondale and GT brands. The majority of sales to this channel consist of bicycles, with some sales of parts and accessories. The Caloi division sells to both IBD and mass merchant channels. The Pacific Cycle division has a focus on mass merchant customers, and along with bicycles and parts and accessories, its product line also includes bicycle trailers, children’s electric ride-ons and some toys. The mass merchant product line of bicycles, parts and accessories are sold under various brands, the primary being Schwinn and Mongoose. Other primary brands used at varying price points include Roadmaster and IronHorse, as well as licensed brands on children’s bicycles and tricycles. Bicycle trailers are sold under the InStep and Schwinn brands; and children’s electric rideons are sold mainly under Kid Trax, as well as certain licensed products. In Europe and internationally, certain bicycle brands are sold across these distribution channels. As an example, in Russia, GT is a successful brand in the sporting goods channel, whereas in the Czech Republic this same brand is sold in the IBD channel. Distribution The company sells its products primarily to major retail chains and Internet retailers. In 2019, the company had sales to mass merchant discount chains, specialty stores, department stores, club format outlets, hardware/home centers, independent stores, sporting goods stores, and Internet retailers. The company conducts its business through various sales and distribution arrangements. These consist of the company’s salaried employees; individual agents who carry the company’s products on either an exclusive or non-exclusive basis; individual specialized agents who sell products, including the company’s, to one customer, such as a major discount chain; and sales agencies, which employ their own sales forces. Major Customers The company has relationship with each of Wal-Mart and Target. Competition Dorel Home has various competitors, including Sauder Manufacturing and Whalen Furniture in the RTA category; Meco in the folding furniture category; Tricam in step stools; Werner in ladders; and Zinus in mattresses. In Europe, the company competes with Britax, Team-Tex, Joie Baby, Artsana, and Cybex (a subsidiary of Goodbaby International Holdings Limited). In Latin America, the company competes with Graco, Evenflo, Britax, Peg Perego and Chicco. The company’s principal competitors include Huffy, Dynacraft, Kent, Trek, Giant, Specialized, Santa Cruz, Scott, and Raleigh. History The company was founded in 1962. It was incorporated in 1962 pursuant to Part I of the Companies Act (Quebec). The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in 1987.