Dollar Tree to purchase Canadian Dollar Giant Stores
- October 11, 2010
Discount retailer Dollar Tree Stores Inc. plans to buy Dollar Giant Store of Canada for about $52 million.
The move will mark Chesapeake-based Dollar Tree’s first expansion outside the U.S.
Under the agreement, Dollar Tree will purchase 85 Dollar Giant stores, all of the firm’s assets, inventory, intellectual property and leasehold rights for $52 million cash in Canadian dollars. (The exchange rate to the U.S. dollar is about even). Dollar Giant, based in Vancouver, sells everything for $1.25 (in Canadian dollars) or less.
The acquisition is expected to be completed by mid-November.
“This acquisition will enable us to further leverage our resources and infrastructure to offer more value to more customers,” Bob Sasser, president and CEO, said in a statement. “It provides Dollar Tree with an outstanding platform for significant, profitable growth in the Canadian market.”