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Description: Dorel Industries Inc. is selling its sports division to Dutch transportation conglomerate Pon Holdings B.V. for US$810 million as the Montreal-based company looks to reduce its debt load.

Source: BNNBloomberg.ca – video report

Date: Oct 12, 2021

Link: https://www.bnnbloomberg.ca/dorel-selling-bicycle-business-for-us-810m-shares-soar-1.1665168

Questions for discussion:

  • Explain why this sale by the firm makes sense as a defensive maneuver against takeover actions by other firms.
  • Why is it a good decision for the buyers?

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