Canada: Dollarama completes acquisition of Australian discount retailer The Reject Shop
- DRC Discount Retail Consulting GmbH
- Jul 27
- 2 min read
Discount Variety Retail Chain Dollarama Inc. announced Tuesday the closing of its previously announced acquisition of The Reject Shop Limited following receipt of the necessary shareholder, regulatory and court approvals.
Headquartered in Melbourne, The Reject Shop is Australia’s largest discount variety retailer with a well-located store network of more than 390 locations spanning every Australian state. This strategic acquisition marks Dollarama’s entry into the Australian market, building on its proven track record as a leading Canadian value retailer with a growing presence in Latin America through Dollarcity, said the company.
“We are pleased to officially welcome the TRS team to Dollarama,” said Neil Rossy, President and Chief Executive Officer of Dollarama. “Expanding our international reach supports our long-term growth strategy, and we are thrilled to be embarking on this exciting new chapter with TRS’s local leaders and more than 5,000 employees. By working together and applying Dollarama’s strengths in sourcing, merchandising and retail operations, we are well positioned to deliver compelling value to Australian consumers and to drive the expansion of our new Australian growth platform over the long term.”
Founded in 1992 and headquartered in Montréal, Quebec, Canada, Dollarama is a recognized Canadian value retailer offering a broad assortment of consumable products, general merchandise and seasonal items both in-store and online. It has 1,638 locations across Canada.
Dollarama also owns a 60.1% interest in Dollarcity, a growing Latin American value retailer. Dollarcity offers a broad assortment of consumable products, general merchandise and seasonal items at select, fixed price points up to US$4.00 (or the equivalent in local currency) in 644 conveniently located stores in Colombia, Guatemala, El Salvador and Peru.
In March, Dollarama announced it had entered into a definitive agreement to acquire all the issued and outstanding ordinary shares of The Reject Shop Limited for an all cash consideration of A$6.68 per ordinary share, which values The Reject Shop’s ordinary share capital at approximately A$259 million (C$233 million). The Transaction will be implemented by way of an Australian scheme of arrangement. The Reject Shop Board of Directors unanimously recommended that The Reject Shop’s shareholders vote in favour of the Arrangement, said Dollarama at the time.
Headquartered in Melbourne, The Reject Shop is Australia’s largest discount retailer with a store network of more than 390 locations across the country. Its offering includes private-label and national brand products. The Reject Shop generated consolidated sales of A$866 million (C$779 million) for the last twelve-month period ended December 29, 2024.
Comments