Dorel Completes Closing for New Credit Facilities and Issue of Preferred Shares

MONTRÉAL, Sept. 29, 2025 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) announced today that it completed the closing of its previously-announced new credit facilities with a group of lenders led by affiliates of TCW Asset Management Company LLC (“TCW”), as administrative agent, in an amount of US $310 million, and a private placement with Alberta Investment Management Corporation (“AIMCo”) of preferred shares in an amount of US $75 million.

“Dorel is very pleased to complete these two transactions,” stated Martin Schwartz, Dorel President and CEO. “The new credit facilities and the proceeds from the preferred shares will re-capitalize our balance sheet. Dorel is now well positioned to advance its strategic agenda, particularly in accelerating the growth of the Juvenile segment and executing the repositioning of the Home segment. We greatly appreciate the support of TCW and our other new lenders and of AIMCo.”

As previously announced, Dorel intends to use the proceeds from the new credit facilities and preferred shares to repay in full Dorel’s previous senior secured debt in an amount of approximately US $180 million, to pay for the restructuring costs of Dorel’s Home segment and for working capital. The terms and conditions of the new credit facilities, preferred shares and related warrants to purchase Class B Subordinate Voting Shares of Dorel are set out in Dorel’s press release of September 22, 2025.

Advisors
TD Securities Inc. acted as sole and exclusive financial advisor to Dorel in connection with the debt financing. TD Securities Inc. and BMO Capital Markets acted as Dorel’s placement agents in connection with the offering of preferred shares.

Fasken Martineau DuMoulin LLP (Canada) and ArentFox Schiff (United States) acted as legal advisors to Dorel in connection with the debt financing and offering of preferred shares, McCarthy Tétrault LLP (Canada) and Paul Hastings LLP (United States) acted as legal advisors to TCW and the other lenders in connection with the debt financing, Stikeman Elliott LLP acted as legal advisor to AIMCo in connection with the offering of preferred shares, and Torys LLP acted as legal advisor to TD Securities Inc. and to BMO Capital Markets.

Profile

Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.3 billion and employs approximately 3,500 people in facilities located in twenty-two countries worldwide.

Caution Regarding Forward-Looking Statements

Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel Industries Inc. (the “Company”) does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties, including statements regarding the proposed new credit facilities and proposed issuance of preferred shares, the impact of the macro-economic environment, including inflationary pressures, changes in consumer spending, exchange rate fluctuations, the imposition of tariffs, and high interest rates on the Company’s business, financial position and operations, and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them. In particular, the Company cannot guarantee that it will sign definitive agreements for the two proposed transactions described in this press release, that the two proposed transactions will be completed, or completed on the terms and conditions and the timetable set out above. Forward-looking statements are provided in this press release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of the Company’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of assumptions that the Company believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations expressed in or implied by the forward-looking statements include:

general economic and financial conditions, including those resulting from the current high inflationary environment;
changes in applicable laws or regulations;
changes in product costs and supply channels, including disruption of the Company’s supply chain resulting from the macro-economic environment;
foreign currency fluctuations, including high levels of volatility in foreign currencies with respect to the US dollar reflecting uncertainties related to the macro-economic environment;
the effect of tariffs on imported goods;
customer and credit risk, including the concentration of revenues with a small number of customers;
costs associated with product liability;
changes in income tax legislation or the interpretation or application of those rules;
the continued ability to develop products and support brand names;
changes in the regulatory environment;
outbreak of public health crises that could adversely affect global economies and financial markets, resulting in an economic downturn which could be for a prolonged period of time and have a material adverse effect on the demand for the Company’s products and on its business, financial condition and results of operations;
the effect of international conflicts on the Company’s sales;
continued access to capital resources, which may be adversely impacted by the macro-economic environment;
failures related to information technology systems;
changes in assumptions in the valuation of goodwill and other intangible assets and any future decline in market capitalization;
there being no certainty that the Company will declare any dividend in the future;
increased exposure to cybersecurity risks as a result of remote work by the Company’s employees;
the Company’s ability to protect its current and future technologies and products and to defend its intellectual property rights;
potential damage to the Company’s reputation; and
the effect of climate change on the Company.

These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in the Company’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors set out in the previously mentioned documents are expressly incorporated by reference herein in their entirety.

The Company cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial may also have a material adverse effect on the Company’s business, financial condition, or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

CONTACTS:
Dorel Industries Inc.
John Paikopoulos
(514) 934-3034

Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034

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