Dorel announces the judgment rendered by the Administrative Court of Luxembourg
MONTREAL, Oct. 28, 2021 (GLOBE NEWSWIRE) – Les Industries Dorel Inc. (TSX: DII.B, DII.A) announces that the Administrative Court of Luxembourg has confirmed on appeal the decision rendered by the administrative tribunal of Luxembourg previously announced that one of Dorel’s wholly owned subsidiaries owes € 54.6 million (euros) in taxes, or US $ 64.2 million, including interest. As a result of the judgment rendered by the Administrative Court of Luxembourg, Dorel must pay a one-time residual cash balance of € 38.6 million (euros), or US $ 45.4 million, to the Luxembourg tax authorities.
Dorel expects the judgment to have an impact of US $ 1.90 on earnings per share reported in its financial statements for the third quarter ended September 30, 2021. Dorel to release its results for the third quarter ended November 5, 2021 September 30, 2021.
As previously announced, the litigation concerned the taxation of the transfer of certain assets as part of an internal corporate reorganization that took place in 2015. It is therefore impossible for Dorel to obtain a reassessment from the authorities of the Luxembourg in this regard.
“We are extremely disappointed with this judgment. Dorel has conducted its business in a completely transparent and legal manner, and has acted on the advice of its tax and legal advisers. Since this is a final decision of the Court, we will abide by that decision, ”said Martin Schwartz, President and CEO of Dorel.
Dorel Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global company operating in three distinct segments: juvenile products, bicycles and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. The Dorel Juvenile Products division has a portfolio of high profile brands including global brands Maxi-Cosi, Quinny and Tiny Love, adding regional brands such as Safety 1st, Bébé Confort, Cosco and Infanti. Brands in the Dorel Sports division include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. The Dorel Maison division, which has developed a complete electronic commerce platform, markets a wide assortment of furniture, some made in the United States and Canada and others imported. Dorel, with annual sales of US $ 2.8 billion, has approximately 8,200 employees working from facilities in twenty-five countries around the world.
Caution regarding prospective
Certain disclaimers contained in this press release, including, without limitation, information regarding payment to Luxembourg tax authorities, may constitute “forward-looking documents” within the meaning of applicable Canadian securities legislation. By their nature, forward-looking statements are subject to many risks and uncertainties, and they are based on several assumptions that suggest the possibility that actual results may not, in substance, meet Dorel’s expectations as stated. ‘they are expressed explicitly or implicitly in these forecasts. Therefore, Dorel cannot guarantee that a forward-looking statement will be nor guarantee as to the benefits it will derive from it if it occurs. Under what may be required by Canadian securities laws, Dorel assumes no obligation to update or revise the outlook, whether as a result of new information, future events or otherwise.
CONTACTS:
Saint Victor Investments Inc.
Rick leckner
(514) 245-9232
Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034