The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

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!

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Americans are currently experiencing one of the most peculiar public episodes of my lifetime. Amid a deadly worldwide disease epidemic, many people are behaving like medieval peasants: alternately denying the existence of the plague, blaming an assortment of imaginary villains, or running around seeking chimerical miracle cures.

Feed store Ivermectin? I've administered it to horses, cows and dogs. But to my wife? No thank you. It says right on the label that it's not for human consumption. But at least you won't die of heartworm.

Keep reading... Show less

Danziger Draws

Jeff Danziger lives in New York City. He is represented by CWS Syndicate and the Washington Post Writers Group. He is the recipient of the Herblock Prize and the Thomas Nast (Landau) Prize. He served in the US Army in Vietnam and was awarded the Bronze Star and the Air Medal. He has published eleven books of cartoons and one novel. Visit him at DanzigerCartoons.

x
{{ post.roar_specific_data.api_data.analytics }}