Dollarama acquires Australian discounter The Reject Shop for $233M
Dollarama Inc. has signed a deal to buy Australian discount retailer The Reject Shop for $233 million.
Headquartered in Melbourne, The Reject Shop’s store network spans 390 locations. Dollarama said it hopes to grow that number to 700 by 2034.
"Identifying the right opportunity to expand into new geographies and build on our track record as a leading value retailer in Canada and Latin America has been a key objective for the Dollarama team. With this acquisition, we have a unique and compelling opportunity to bring our differentiated value proposition to a new market which presents a clear path for growth through an established platform," said Neil Rossy, president and CEO of Dollarama, in a release.
The Reject Shop’s offering includes private-label and national brand products.
The company employs more than 5,000 people.
Dollarama said it will work with the retailer’s local management team to execute its strategic vision for the business.
“Together, we will leverage our core strengths as value retailers with best-in-class merchandising, sourcing and operational expertise. With compatible cultures and values, we are confident that the business will have an exciting future as Dollarama's new and complementary growth platform," Rossy added.
