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Dollar Tree to buy Family Dollar for $74.50 per share, transaction valued at $9bn

Staff writer ▼ | July 28, 2014
Dollar Tree and Family Dollar Stores have entered into a definitive merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction.
Dollar Tree
Boards approved   The creation of the biggest discount retailer in North America
The value of the consideration is $74.50 per share, a 22.8% premium over Family Dollar's closing price as of July 25, 2014.

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, subject to the collar described below.

At closing, Family Dollar shareholders will own no less than 12.7% and no more than 15.1% of the outstanding common stock of Dollar Tree. Howard R. Levine and Trian Fund Management, L.P. and funds managed by it, which collectively own approximately 16% of the outstanding stock of Family Dollar, have entered into voting agreements in support of the merger.

"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," said Bob Sasser, Dollar Tree's chief executive officer.

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."


 

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