Cerberus Capital Management has agreed to pay 10.3 percent more than previously planned to acquire control of Dorel Industries – whose assets include major bicycle brands such as Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse – following exchanges and discussion with shareholders holding more than 50 percent of the group’s shares. The shareholders are most likely members of the controlling Schwartz family. The new price of 16.00 Canadian dollars per share represents a premium of 267.8 percent on the closing price of Dorel’s Class B subordinate voting shares on the Toronto Stock Exchange on Feb. 20, 2020, the date preceding a five-day market correction related to the Covid-19 pandemic. It is at the mid-point of the range for the company’s fair market valuation established by TD Securities on Nov. 20 under the supervision of a Special Committee of shareholders. The new price values Dorel at US$1,012 million, including debt and fees of $65 million, or a ratio of 8.5 times the company’s adjusted Ebitda for the 12 months ended last Sept. 30. The purchase price, plus a new contingent tax liability (in Europe) of about $57 million, would be paid in part through the issue of $314 million worth of shares in Cerberus and Koch Equity Investment. The family shareholders would roll over $83 million of common equity in the transaction at the agreed price of 16.00 Canadian dollars per share.