USA: Dollar Tree announces plans to acquire Family Dollar
Dollar Tree, the largest discount retailer in the US, has announced that it has entered into a definitive merger agreement under which it will acquire rival chain Family Dollar in a cash and stock transaction.
The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close by early 2015, at which time the Family Dollar shareholders will receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares. The value of the deal is said to be $8.5 billion.
"This is a transformational opportunity", stated Bob Sasser, Dollar Tree's Chief Executive Officer. "With the acquisition of Family Dollar Stores, Dollar Tree will become a leading discount retailer in North America, with over 13,000 stores in 48 states and five Canadian Provinces, sales of over $18 billion, and more than 145,000 associates on our team. We will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands, and when this transaction is complete, we will operate under the Family Dollar brand as well”.
Howard R. Levine, Chairman and CEO of Family Dollar, commented: "For more than 54 years, Family Dollar has provided value and convenience to customers. Dollar Tree also has a rich history of providing great value to customers, and together, as one company, we can provide more customers with even greater value and convenience. Today's announcement represents the successful culmination of a comprehensive strategic review process”.
Source: Dollar Tree