Heading to Colombia
Dollarama is exercising an option to buy a majority stake in Latin American retailer Dollarcity, expanding a relationship that’s been in place since 2013. Analysts say Dollarcity is best established in Colombia, the large republic adjoining Panama and with coastlines on both the Caribbean and Pacific. It has a population of 50 million, 15 million more than Canada. Under the terms of the arrangement disclosed on Tuesday morning, Dollarama will make a US$40-million upfront payment, with the total purchase price rising to as much as US$95 million in the third quarter of Dollarama’s 2021 fiscal year.
