Dollarama inks deal for Latin American acquisition

MONTREAL — Dollarama has reached an agreement to purchase a majority stake in Latin American discount retailer Dollarcity. Under the terms of the sale, Dollarama will pay a total of between $85 and $95 million for 50.1% of Dollarcity, which operates stores in Colombia, Guatemala and El Salvador. A $40 million payment will be due when the deal is closed, with the remainder payable in Q3 of 2021. “After six years of due diligence review and on-the-ground experience in Latin America, we believe that now is the right time to exercise our option to acquire this interest, and that Dollarcity is the right vehicle to capture the growth potential we see in our chosen markets,” Dollarama CEO Neil Rossy said in a statement.