Montreal-based children’s product maker Dorel Industries Inc. is acquiring the juvenile business of Hong Kong-based Lerado Group, one of the largest juvenile product manufacturers in China, for US$120 million.
The purchase will provide Dorel with its first company-owned factories in Asia.
The acquisition includes four facilities, three plants in China and a research and development facility in Taiwan.
“This venture will allow us to be more flexible in an increasingly changing environment. It has become more important than ever to be vertically integrated and be in direct control of our supply chain,” Dorel president and CEO Martin Schwartz said in a statement. “Dorel will benefit from Lerado’s consistent investment in new facilities and technology, including a recently constructed car seat crash test laboratory similar to those owned by Dorel in the U.S. and Europe.”
Dorel has annual sales of US$2.6 billion and employs 6,300 people in 24 countries.