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Gold/Mining/Energy : Dorel Industries (DII.B , M or T) good earnings report -- Ignore unavailable to you. Want to Upgrade?

To: Jay Arkay who wrote (89)	4/25/2000 10:13:00 PM
From: Jay Arkay	Read Replies (1) \| Respond to of 96

Additional details about Dorel's plans to acquire Safety 1st are contained in an article in today's Globe and Mail, Report on Business section. I'll just note those items that are additional to what was in the news release. Dorel beat out two other companies that also wanted to acquire Safety 1st. Dorel made the best bid, but Safety 1st CEO Michael Lerner also stated that "Dorel is exactly the company I would like to align myself with." Safety 1st will be kept as a separate operating division of Dorel, and Mr. Lerner and other Safety 1st senior management will be retained. According to Dorel CEO Martin Schwartz, "The beauty of this acquisition is that there are very few, if any competing product lines." Another important point mentioned by Schwartz was that he expects the acquisition to be neutral to Dorel's earnings this year and positive to earnings next year. When I looked at the acquisition price, the debt that Dorel will be assuming, and compared the likely interest expense with Safety 1st's net earnings for the past year, I had reckoned that the acquisition would depress Dorel earnings for at least the first one or two years until Dorel squeezed operating economies out of Safety 1st and also grew its revenues. So this is particularly good news. Dorel has shown its acumen in past acquisitions, and most of them have worked out very well for the company.