CHESAPEAKE, Va. — Dollar Tree is going international.
The discount chain here last week agreed to acquire Dollar Giant, a Vancouver, British Columbia-based chain operating 85 small discount stores in Canada, for around $52 million (U.S.) in cash. The acquisition represents Dollar Tree's first international expansion.
Dollar Giant had sales of around $3 million in 2009. It operates stores offering consumables, seasonal items and home goods at prices of $1.25 (Canadian) or less. Locations range between 10,000 square feet up to 23,000 square feet. The chain was founded in 2001 by Joseph Calvano, a former K-Mart executive.
Calvano is expected to stay with the company to operate the Canadian stores.
For Dollar Tree, the acquisition will allow it to better leverage its resources and give it room to grow in Canada. The company operates nearly 4,000 stores in 48 U.S. states.
“I am excited about the opportunity to expand our presence into Canada,” Bob Sasser, president and chief executive officer of Dollar Tree, said in a statement. “Dollar Giant is an excellent fit for us. This acquisition will enable us to further leverage our resources and infrastructure to offer more value to more customers. It provides Dollar Tree with an outstanding platform for significant, profitable growth in the Canadian market.
“I am particularly impressed with the people of Dollar Giant,” he added. “The company's management and associates have extensive retail experience and the proven ability to build and expand an effective, profitable business. This team will remain in place. They are one of the key reasons for my confidence about our future success in Canada.”
Dollar Tree's last significant acquisition was in 2006, when it bought 138 Deal$ stores from Supervalu. It purchased the Salt Lake City chain Greenbacks in 2003 and Philadelphia-based Dollar Express in 2000.
Dollar Tree stock was trading at 52-week highs last week.