08:10 AM EDT, 03/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

DOL announced the acquisition of The Reject Shop (TRS), Australia's largest discount retailer, for an all-cash deal at AUD6.68 per share (implied equity value is AUD259M or CAD233M). The transaction, valued at an EV/EBITDA multiple of 8.9x (pre-AASB 16) or 3.3x (post-AASB 16), will be funded through cash on hand and existing credit facilities. We find the valuation multiple compelling. DOL expects minimal immediate impact on EPS and its leverage ratio of 2.2x, with closing anticipated in H2 CY 25. TRS operates 390 stores across Australia, and we believe DOL's expansion target of 700 stores by 2034 is achievable given the underpenetrated discount retail market. The deal aligns with DOL's international growth strategy, complementing its Canadian operations and Latin American presence through Dollarcity, which is set to enter Mexico in 2026. We expect DOL to leverage its operational expertise to optimize TRS's existing network before accelerating store growth, similar to its successful approach with Dollarcity.