Dorel Enters into Deal to Improve Financial Situation

Canadian consumer goods giant Dorel Industries has decided to sell and leaseback its factory and warehousing facility in Columbus, Ind.

The transaction, valued at $30 million US, is part of the company’s initiative to finance the growth of its juvenile segment and the turnaround of its home segment, as announced Jan. 30.

Approximately $22 million US will be used to fund the company’s ongoing operations, with the balance allocated to reduce existing debt.

The lease has an initial term of 10 years and may be renewed at Dorel’s option for two terms of five years each.

The initial annual rent is approximately $2.9 million US, subject to annual increases.