Discount Retailer Sold To Canadian Group

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.

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David Richards

David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.