Dorel Industries announces financing transaction

Dorel Industries (DIIBF) entered into a sale-leaseback transaction for its factory and warehousing facility in Columbus, Indiana. The gross proceeds to Dorel from the sale will be $30M, of which approximately $8M will be allocated to reduce existing debt, with the balance designated for funding the Company’s ongoing operations. The lease has an initial term of ten years and may be renewed at the Company’s option for two renewal terms of five years each. The initial annual rent is approximately $2.9M, subject to annual increases. The obligations of the lessee Dorel Juvenile Group are not guaranteed by Dorel Industries, its parent company. This transaction is part of the Company’s initiative to finance the growth of its Juvenile segment and the turnaround of its Home segment, as announced on January 30, 2025. The Company is diligently exploring additional opportunities to further enhance its financial position.