Canadian discount retailer Giant Tiger up for sale: sources
(Reuters) - One of Canada's largest discount chains, Giant Tiger Stores Ltd, is exploring a sale that could value it at around $800 million, three people familiar with the matter said on Thursday.
The chain, which has more than 200 stores throughout Canada and employs more than 7,000 people, has hired Goldman Sachs Group Inc (GS.N) to advise on a potential sale, the sources said.
The company has around $80 million in earnings before interest, tax, depreciation and amortization (EBITDA) and could attract a valuation of around 10 times that amount, one of the people said.
The people asked not to be identified because the sale process is confidential. Giant Tiger could not be immediately reached for comment. Goldman Sachs declined to comment.
Privately owned Giant Tiger, founded in 1961, operates with nearly all of its stores franchised.
Discount retail has become an increasingly competitive category in Canada, as U.S. giants like Wal-Mart Stores Inc (WMT.N) and Target Corp (TGT.N) square off against smaller Canadian players.
(Reporting by Olivia Oran and Greg Roumeliotis in New York; editing by Andrew Hay)
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