Dollar Tree, Inc., the nation’s leading operator of discount variety stores selling everything for $1 or less, and Family Dollar Stores, Inc., a leading national discount retailer offering name brands and quality, private brand merchandise, announced July 28 that they have entered into a definitive merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction. The value of the consideration is $74.50 per share, a 22.8 percent premium over Family Dollar’s closing price as of July 25.
The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close by early 2015. Family Dollar operates a store in Wellington.
“This is a transformational opportunity,” said 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. Throughout our history, we have strived continuously to evolve and improve our business. This acquisition, which enhances our footprint and diversifies our company, will enable us to build on that progression, and importantly, positions Dollar Tree for accelerated growth. By offering both fixed-price and multi-price point formats and an even broader, more compelling merchandise assortment, we will be able to provide even greater value and choice to a wider array of customers.”