Bain spends mega dollars on Dollarama

The Boston buyout firm has reportedly acquired the Montreal discount retailer for a C$1.05 billion price tag.

Boston-based buyout behemoth Bain Capital has reportedly acquired Montreal-based discount retailer Dollarama for C$1.05 billion ($890 million; €676 million).

Reportedly, Bain will provide approximately C$364 million of the C$455 million of equity invested in the deal, with about C$600 million coming in as debt from Citigroup and Royal Bank of Canada.

Dollarama owns and operated more than 350 stores in Quebec, Ontario and Canada’s Maritime provinces. The chain specialises in selling things for a dollar; it reportedly generated more than C$600 million in sales.

Ropes & Gray and Stikeman Elliot were counsel to Bain. PricewaterhouseCoopers served as accounting adviser to Bain.

Bain has long been a major investor in Canada. This past September, Bain agreed to buy SuperPages Canada, the Canadian directory operations of Verizon Communications, for $1.54 billion (€1.27 billion).

Last year, Bain Capital teamed with Caisse de depot et placement du Quebec to acquire the recreational products business of jet maker Bombardier for C$1.2 billion (US$870 million). And in 2000, it joined a private equity consortium to acquire Shoppers Drug Mart for C$2.55 billion (US$2 billion). The group also included KKR, Ontario Teachers' Merchant Bank, CIBC Capital Partners, Charlesbank Capital Partners, and DLJ Merchant Banking Partners.