Dollarama to acquire Australian discount retailer the Reject Shop in all-cash deal

Dollarama head offices are seen in Montreal, Wednesday, June 7, 2023. THE CANADIAN PRESS/Christinne Muschi

MONTREAL — Dollarama Inc. says it’s entered an agreement to buy Australian discount retailer the Reject Shop.

The Montreal-based company will pay $6.68 (Australian) for each issued and outstanding share of the Reject Shop in the all-cash deal, or an ordinary share capital value of about $233 million in Canadian dollars.

The share price represents a 108 per cent premium to the Reject Shop’s 20-day volume-weighted average.

Dollarama’s president and CEO Neil Rossy said it’s an opportunity for Dollarama to expand into new geographies.

The Reject Shop has more than 5,000 employees across Australia and generated consolidated sales of $779 million for the 12-month period ended Dec. 29.

It’s headquartered in Melbourne and has more than 390 stores across the country, selling private-label and brand-name products.

The transaction is expected to close in the second half of 2025.

This report by The Canadian Press was first published March 26 2025.