Dorel Industries Inc. (TSX: DII.A, DII.B;) announced that it has acquired certain assets of Iron Horse Bicycles, including inventory, various trademarks and trade names, as well as the "Iron Horse" brand, in a transaction valued at US$5.2 million on July 15. According to the purchase agreement, Dorel will pay CIT Group, Iron Horse’s secured lender, $220,000 on July 15, 2010. CIT Group will pay at least US$150,000 to Iron Horse’s unsecured creditors.

The assets were acquired in a bankruptcy auction by Iron Horse’s secured lender following that company's decision to suspend operations for financial reasons. Several companies, including retailer Dick's Sporting Goods, manufacturer Kent International, Care Bicycles and Outdoor Cycle Group/Randall Scott, a company owned by the son of former Iron Horse president Cliff Weidberg, also submitted bids for Iron Horse. Scott and Weidberg were present in the courtroom. Over 90 bids were submitted during the six-hour process, in a dramatic ending reminiscent of Pacific Cycles' acquisition of Schwinn and GT over Huffy Bicycles on September 11, 2001 in a Denver, Colorado courtroom. According to a report on www.bicycleretailer.com, Judge Alan Trust ruled on Monday afternoon that Pacific's all-cash offer of $5m, plus a $220,000 one-year note, was best for the involved parties. Founded in 1987 in New York , Iron Horse's bicycles are made in Asia.

The company was thrown into bankruptcy in March by three suppliers in China and Taiwan owed more than US$5 million. It also owes US$17 million to other creditors and US$4 million to secured creditor CIT Group. The transaction adds yet another highly recognized name to Dorel’s portfolio. “Adding Iron Horse to our stable of existing world-class bicycle brands, such as Cannondale, Schwinn, GT and Mongoose, brings depth to our mountain bike offerings,” said Robert Baird, President of Dorel’s Recreational/Leisure segment.

“With growing interest in mountain biking and racing, the addition makes Dorel better suited to reach new retailers and, in turn, consumers.” “This latest purchase is in line with the strategic road map we have developed to build our bicycle business into the leading global bicycle company,” stated Dorel President and CEO, Martin Schwartz. “While their 2008 sales were US$25 million, we are confident we can significantly grow this number. Iron Horse is another excellent brand that we will be able to leverage through our vast resources. The purchase price was most favourable and we look forward to an excellent return on this nvestment.”

After medium Typhoon Morakot struck Taiwan on August 8, central Taiwan (Nantou County), southern Taiwan (Chiayi, Tainan, Kaohsiung, and Pingtung counties), and eastern Taiwan (Taitung County) experienced severe flooding and mudflows. The damage from this typhoon was the worst in fifty years. By now the people of Taiwan and the world have seen countless heartrending images of grief-stricken family members and victims waiting for assistance. This disaster has also awakened a great sense of compassion and sympathy, and a vast number of people have pitched in to assist the relief effort. Many bicycle firms have fulfilled their responsibility as good corporate citizens by promptly making donations for disaster relief.

Bicycle firms have responded actively to this humanitarian disaster by making generous donations. Giant has donated NT$20 million for relief and reconstruction efforts, and Merida has donated NT$16 million. Ideal has kicked off a company-wide employee donation drive, and has committed itself to matching employees' contributions. Pacific Cycle has generously given NT$2 million. Also Moderne Tech, FSA and Maxxis have donated to disaster relief. As the leading bicycle media firm in Taiwan, Wheel Giant will contribute 5% of its magazine subscription income from 8/12 to 8/31 to relief efforts.

We hope that everyone will show their love and work together to help the disaster-stricken residents and Taiwan recover and rebuild from this catastrophe.

Now that IFMA is history, its successor – the first Bike Expo – was held in Munich on July 23-26 this year, and attracted considerable attention from the industry, although many firms are maintaining a wait-and-see attitude. The show had a total of 211 participating vendors in two halls (B5 and B6), which occupied an area of 22,000 square meters. ZEG, the show's biggest supporter, was located in B5. Such major companies as KTM, Hercules, Kettler, Panther, and Derby had booths at the show, and Taiwanese firms were dispersed throughout B5 and B6. A Chinese group was present, and most members were in B6.

Bike Expo's theme was "Urban Mobility," and the exhibited products included e-bikes/pedelects, city bikes, trekking bikes, road bikes, children's bikes, mountain bikes, and single-speed bikes. E-bikes probably received the most attention. Bike Expo is a government-run trade show, and the Bavarian state government and Munich each have a 50% share. One perk of participation in the show is that holders of an exhibitor pass can ride public transportation free during the period of the show. Apart from static exhibits within the booths, there was also an outdoor demo.

The participating vendors generally had praise for the show, and many vendors expressed that the Munich exhibition center had very complete facilities and excellent ventilation. ZEG President George Honkomp felt quite satisfied with the show, and plans to lend it his support in the coming years. ZEG held its annual dealers' conference on the day before the start of the show (7/22), and treated close to 400 dealers to free lodging for a night. As a result, buyers' inquiries came fast and furious on the first day, although action slackened visibly on the second day. The show was opened to consumers on the third and fourth days, and the floor again teemed with visitors. Including both Trade and Public days, Bike Expo's overall performance was not bad. The only major fault found by exhibitors was the less-than-ideal period of the show. Because July is in the midst of the European vacation season, and new products are mostly not out yet, the show lacked much significance.