July 3, 2019
Dollarama has entered into an agreement to purchase a 50.1% interest in Dollarcity, which operates discount stores in Colombia, Guatemala and El Salvador, the Montreal-based company said.
The purchase price is estimated to range between $85m and $95m, when the deal closes next month, according to Dollarama. The price is based on five times Dollarcity’s EBITDA, minus net debt, for the 12-month period ending June 30, 2020.
The Canadian buyer said it will make an initial payment of $40m when the
Montreal-based retailer to pay as much as $95m for stake in discount chain