Canadian value retailer Dollarama has splashed out $259 million to buy the Reject shop.

The deal based on a multiple of 112% of the Companies current share value will see shares change at $6.68.

The shares last traded at $3.15.

At December 2024 the business had revenues of 235.86M, EBITDA was $16.68M, the business operates on a margin of 3.87%.

“Attracting an offer from Dollarama, a recognised leader in the value retail market, is testament to … the significant growth potential that exists for The Reject Shop,” chairman Steven Fisher said.

“The all-cash Scheme Consideration provides attractive value and certainty for all shareholders.”

The Reject Shop said its board would unanimously recommend the deal to shareholders, subject to a recommendation by an independent expert. Kin Group, the retailer’s largest shareholder owning a 20.8 per cent stake, intends to support the bid.