Confirming the verdict of a lower court, the Luxembourg Administrative Court has ruled that a local subsidiary of Dorel Industries owes €54.6 million including tax to the local government. As a result, the owner of Cannondale, Schwinn and other brands, whose bike division is being purchased by Pon Holdings, will have to pay a one-time remaining cash balance of €38.6 million to Luxembourg’s tax authorities, diluting its third-quarter earnings by about $1.90 per share. The case related to the transfer of certain assets in the context of an international reorganization that took place in 2015. Martin Schwartz, president and CEO of Dorel, said his company will abide by the court’s decision.

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