The Montreal-based firm says it acquired the extra stake in change for six,060,478 Dollarama widespread shares. The shares had been price a complete of about $761.7 million primarily based on Dollarama’s share value of $125.68 on Tuesday.
Dollarama acquires Dollarcity
Dollarama additionally has acquired an possibility to purchase a further 9.8% stake in Dollarcity at any time on or earlier than Dec. 31, 2027. Dollarama and the Dollarcity founding stockholders additionally mentioned that they’ve agreed on governance phrases for the enlargement of the enterprise to Mexico.
Dollarama and the Dollarcity founding stockholders will not directly have an 80.05% and 19.95% curiosity, respectively, within the Mexican portion of the enterprise. Dollarcity intends to pilot its first retailer in Mexico in 2026.
“With its robust management group, Dollarcity is well-positioned to proceed delivering worthwhile development, each from its present markets of operation and as we eye our subsequent market of entry,” Dollarama chief government Neil Rossy mentioned in an announcement. “We sit up for making ready for entry in Mexico within the close to time period, a big and dynamic market with untapped potential within the worth retail house, guided by the identical cautious and disciplined method as with our profitable entries in Colombia in 2017 and in Peru in 2021.”
Dollarama earnings for the primary quarter
The deal got here as Dollarama reported a revenue of $215.8 million, or 77 cents per diluted, for its quarter ended April 28, up from a revenue of $179.9 million or 63 cents per diluted share a 12 months earlier.
Gross sales for what was Dollarama’s first quarter totalled $1.4 billion, up from $1.3 billion in the identical quarter final 12 months.
Comparable retailer gross sales for the quarter rose 5.6%, together with an 8.7% improve within the variety of transactions and a 2.8% lower in common transaction dimension.
“As anticipated, we’re seeing a progressive normalization in comparable retailer gross sales, with development primarily pushed by persistent greater than historic demand for core consumables and different on a regular basis necessities,” Rossy mentioned. “As Canadian customers proceed to hunt out compelling worth for his or her hard-earned cash, we’ll stay targeted on executing on our price and comfort promise.”
