Dollar Tree To Buy Family Dollar In $9.2 Bn Deal

@AFP
Dollar Tree To Buy Family Dollar In $9.2 Bn Deal

New York (AFP) — U.S. discount retailers Dollar Tree and Family Dollar announced Monday a $9.2 billion merger that will create a huge chain of more than 13,000 stores across North America.

Dollar Tree, which sells everything for $1 or less, will pay combination of $59.60 in cash and $14.90 equivalent in Dollar Tree shares for Family Dollar, and assume its debt. The cash-and-stock portion is valued at $8.5 billion.

Dollar Tree operates 5,080 stores in 48 US states and five Canadian provinces, primarily in suburban areas.

Family Dollar, which sells name brand and private-label goods at various prices, has more than 8,200 stores in 46 U.S. states in urban and rural areas.

The combined company will have sales of more than $18 billion and more than 145,000 employees. The merger will keep the Family Dollar brand as well as Dollar Tree’s own brands, which include Deals and Dollar Tree Canada.

Bob Sasser, Dollar Tree’s chief executive, said the acquisition will transform the company into a leading discount retailer in North America that is positioned 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,” Sasser said in the statement.

Activist investor Carl Icahn pressured Family Dollar to put itself up for sale when he took a stake in the company in early June.

Investors welcomed the news. Dollar Tree rose 6.6 percent to $57.85 and Family Dollar soared 22.4 percent to $74.26 in opening trade.

The takeover was unanimously approved by the boards of directors of both companies and is expected to close by early 2015.

AFP Photo/Arif Ali

Interested in national news? Sign up for our daily email newsletter!

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

No, Biden Isn't Terribly Unpopular (And He Polls Better Than Trump)

Time was when getting caught in a malicious lie about a rival would have ended an American politician’s career. We no longer live that way. Just the other day, Donald Trump unleashed a series of falsehoods attacking President Biden that would have shamed a carnival barker.

Keep reading...Show less
Secession: For Modern Americans, Red States Are Now Uninhabitable
Abortion billboard in Atlanta, Georgia

I walked past the TV in the living room just now, and the chryron on the screen read, “Election deniers in charge of elections in 17 states.” It came to me that we’ve entered a period when the political polarization of the country has become physical, because a huge section of our nation is uninhabitable by increasing numbers of citizens.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}