Letko Brosseau Intends to Vote AGAINST Proposal to Take Dorel Industries Private

MONTREAL, Nov. 2, 2020 /CNW Telbec/ - Letko, Brosseau & Associates Inc., an independent investment manager that exercises investment control or direction over approximately 13.1% of the outstanding class B subordinate shares of Dorel Industries Inc. ("Dorel" or the "Company"), today announced its intention to vote AGAINST the proposed going private transaction of Dorel by Cerberus Capital Management, L.P. and the controlling shareholders of the Company (Martin Schwartz, Jeffrey Schwartz, Alan Schwartz and Jeff Segel or the "Family Shareholders"). The Family Shareholders, through their ownership of Dorel Class A and Class B shares, control approximately 19.18% of Dorel's outstanding shares on an economic basis and 60.17% on a voting basis.

Based on Letko Brosseau's own analysis, the proposed offer is opportunistic and significantly undervalues the Company:

• The transaction price proposed ($14.50) offers no premium above Dorel last trading price ($14.39) before the announcement.
• Based on consensus estimates¹, the offer values Dorel at only 11.3x 2020 earnings par share, and 2x cash flow per share.
• Dorel has shown its resilience during the pandemic, with two of its three divisions (Dorel Sports and Dorel Home) reporting record revenues during its second quarter of 2020.

We have been long time shareholders of Dorel. To protect the value of our investment, we intend to vote against the proposed going private transaction. We strongly believe on the long-term upside for the Company's share. We note that the Family Shareholders are of the same view since they plan to remain shareholders of the Company.

We remind the Company's board of directors and its Special Committee of independent directors of its duty to consider the interests of all shareholders in reviewing the merits of this offer.

Letko Brosseau is a Canadian independent investment manager founded in 1987. The firm manages assets for institutional investors and private clients.

FORWARD-LOOKING STATEMENTS

Certain information contained in this press release may constitute forward-looking statements. Forward-looking statements may include estimates, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Letko Brosseau believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Letko Brosseau's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and Letko Brosseau does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.

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¹ Source: FactSet financial data and analytics

SOURCE Letko, Brosseau & Associates Inc.

Peter Letko, [phone], [email protected]; Daniel Brosseau, [phone], [email protected]