Dorel to buy Hong Kong-based baby products maker for $120 million

Mon Jun 16, 2014 9:30am EDT

(Reuters) - Canada's Dorel Industries Inc said it would buy Hong Kong-based Lerado Group, a maker of baby strollers and infant car seats, for $120 million to expand in Asia.

The deal will give Dorel, known for its Cannondale and Schwinn bicycles, its first company-owned factories in Asia.

Lerado Group, a unit of Lerado Group Holding Co Ltd, also makes baby beds, soft goods, high chairs and bouncers.

Dorel bought a majority stake in Brazil's largest cycle company Caloi last year, in a move to expand its recreational unit.

RBC Capital Markets, KPMG and Norton Rose Fullbright advised Dorel on the Lerado deal.

Dorel's shares closed at C$40.17 on the Toronto Stock Exchange on Friday.

(Reporting By Sneha Banerjee in Bangalore; Editing by Saumyadeb Chakrabarty)