Dollarama Inc. has grown its share in Latin American retailer Dollarcity to 60.1% after acquiring an additional 10% equity.
The Montreal-based corporation claims it obtained the increased ownership in exchange for 6,060,478 Dollarama common shares. The shares were valued around $761.7 million at Dollarama’s share price of $125.68 on Tuesday.
Dollarama has also obtained the option to purchase an additional 9.89 percent ownership in Dollarcity at any point on or before December 31, 2027.
Dollarama and Dollarcity’s founding owners also stated that they had agreed on governance arrangements for the company’s expansion into Mexico.
Dollarama and Dollarcity’s initial owners will have an indirect 80.05 percent and 19.95 percent stake, respectively, in the Mexican component of the company.
Dollarcity plans to launch its first store in Mexico in 2026.
The deal occurred as Dollarama posted a profit of $215.8 million, or 77 cents per diluted share, for the quarter ended April 28, up from $179.9 million, or 63 cents per diluted share, the previous year.
Sales for the quarter were $1.4 billion, up from $1.3 billion in the same period last year.
Dollarama Inc. is a Canadian dollar shop retail chain based in Mount Royal, Quebec. Since 2009, it has been Canada’s largest retailer of things priced at $5 or less. Dollarama operates over 1400 outlets in Canada, with the majority of them located in Ontario. Dollarama was created by Larry Rossy, a third-generation retailer and Canadian entrepreneur. It all began in 1992 with a single store in Matane, Quebec, and quickly expanded over the next two decades to become a household name and shopping destination for Canadians from coast to coast.
Dollarama is now a well-known Canadian value retailer with over 1,000 stores, run by Neil Rossy, a fourth-generation merchant and part of the company’s founding management team.
Dollarama seeks to give customers with a consistent shopping experience and attractive value by stocking a wide range of general commodities, consumables, and seasonal items. All stores are corporately owned and run, with convenient locations in metropolitan areas, mid-sized cities, and small communities. Products are supplied in single or many units at cheap, fixed prices.
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