Dorel Home grows with strategic capital investments and European acquisition
Dorel Industries Inc. recently announced both an extensive equipment investment at three of its Dorel Home North American factories and the purchase of Notio Living, an e-commerce home furnishings firm based in Holstebro, Denmark.
To facilitate production flexibility, the equipment improvements will be at the two ready-to-assemble (RTA) furniture Ameriwood plants in Tiffin, Ohio and Cornwall, Ontario, as well as at Dorel Home Products (DHP) in Montreal, Quebec. The upgrades, which total approximately $10 million USD across Dorel Home’s North American manufacturing base, will bring back some production from Asia, helping to offset the industry-wide supply chain issues and will better position the segment for growth with value-added innovative new products.
“One of the key benefits of the production investment will be our ability to better serve our e-commerce partners with on-trend products made in North America,” said Dorel Home CEO Norman Braunstein. “The additions at the Ameriwood facilities will drive efficiencies and greater volume of higher value product lines such as entertainment units, storage organization, fireplaces, and wall beds, all of which are growing consumer categories.”
“We are constantly investing and innovating in our Dorel Home business, which has consistently performed well over the years,” commented Dorel President & CEO, Martin Schwartz. “Given the continuing industry-wide supply chain issues, it was necessary to bring greater stability to our supply chain by upgrading our factories. Once resources are fully ramped up early next year, Dorel Home will be able to increase its production of locally produced higher-margin value-added items.”
Dorel Home is also buying Danish-based Notio Living for approximately $19 million USD. The company, which markets thousands of products sourced from around the world, has been in the home furnishings business for 25 years and operates throughout Europe with a strong presence in the e-commerce market.
“The Notio Living acquisition provides a tremendous advantage for further European expansion due to its strong distribution network,” said Schwartz. “The combination of Dorel Home’s strong portfolio of products and brands with Notio’s distribution capabilities in mainland Europe will materially augment Dorel Home’s European business. We currently have a successful presence in the United Kingdom. The addition of Notio Living is an exciting opportunity for the segment to rapidly increase its reach in Europe, and we are anxious to get started. Dorel remains fully committed to taking a disciplined approach to value creation as it sees significant upside in its Dorel Home business. Today’s announcements will accelerate our strategy for growth.”
The transaction is subject to customary regulatory approvals and is expected to close later this year.