Issue 27- Dollarama Goes to Latin America


Issue 27- Dollarama Goes to Latin America

On July 2nd, 2019, Dollarama (TSX: DOL) announced that they exercised their option to acquire 50.1% of Dollarcity. This acquisition will establish the next growth era for DOL. The purchase price is approximately US$90M and is expected to close in August 2019. The transaction is immediately accretive to EPS. Dollarcity has lower margins, however I see this as an opportunity for DOL.

 

Disclaimer: Palos Funds are shareholders of DOL.

By Charles Marleau, CIM & Joany Pagé, CFA

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By Charles Marleau, CIM & Joany Pagé, CFA

 

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