The company behind the Garage and Dynamite stores is preparing to go public, which will allow its owner, Andrew Lutfy, to crystallize his billionaire status.
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The Dynamite Group announced Monday its intention to list its shares on the Toronto Stock Exchange at a price ranging between $19 and $23 each.
Photo LinkedIn
Value of $2.3B
If the transaction goes through as planned, it will give the Montreal retailer a value of approximately $2.3 billion.
Mr. Lutfy intends to take advantage of the transaction to sell a 13.3% stake in the Dynamite Group to other investors for approximately $300 million.
His remaining shares in the company (86.7% of the total) will be worth approximately $2 billion and will carry multiple voting rights that will allow him to retain control of more than 98% of the retailer’s capital.
Insolvent four years ago
These big figures are all the more impressive given that four years ago, the Dynamite Group placed itself under the protection of the courts, drowning in debts of more than $350 million. A group of unsecured creditors to whom the company owed more than $112 million was ultimately only able to recover $8 million, or barely 7% of the total.
Andrew Lutfy, 60, has been in the news a lot in recent months since another of his companies, Carbonleo, recently opened the luxury Royalmount shopping center on the island of Montreal.
In 1982, when he was 18 years old, Mr. Lutfy was hired as a stock clerk in the company’s very first store, located in Place Versailles in Montreal.
Chamandy family
Grandson of Joseph Chamandy, founder of clothing manufacturer Gildan, Andrew Lutfy became the sole shareholder of Groupe Dynamite in 2002.
The retailer currently operates 299 Garage and Dynamite stores: 185 in Canada and 114 in the United States.
The new Dynamite store at Royalmount.
Dynamite Group Photo
Last year, Groupe Dynamite generated net profits of $85.8 million on revenues of $800.8 million.
Online sales account for approximately 18% of the company’s revenue.
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