Chesapeake, Va., and Matthews, N.C. — The transaction, which has been approved by both boards of directors, is expected to close by early 2015.
Chesapeake, Va., and Matthews, N.C. — Dollar Tree, Inc., a leading operator of discount variety stores, and Family Dollar Stores, Inc., a leading national discount retailer, 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% 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.
“This is a transformational opportunity,” says Bob Sasser, CEO of Dollar Tree. “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.”
Adds Sasser: “We are excited about the prospects for the combined company and the many opportunities that it will create for our associates, vendors, business partners and shareholders. Howard Levine, CEO of Family Dollar, will remain with the company and report directly to me. Upon closing, Howard will become a member of the Dollar Tree board of directors. We are excited to welcome the Family Dollar team to Dollar Tree, and we look forward to working together to deliver increased value to the consumer and to our shareholders.”
Says Levine: “Together, as one company, we can provide more customers with even greater value and convenience. This combination will enable Family Dollar to accelerate efforts to improve the business and will benefit our dedicated team members who will now be part of a larger, more diverse organization. I am excited about our future with Dollar Tree, and I look forward to working with the Dollar Tree team to complete the combination as quickly as possible.”
J.P. Morgan Securities LLC acted as exclusive financial advisor to the board of directors of Dollar Tree, and J.P. Morgan Chase Bank, N.A. committed to provide bridge financing for the transaction. Wachtell, Lipton, Rosen & Katz and Williams Mullen acted as legal counsel to Dollar Tree in connection with the transaction. Morgan Stanley & Co. LLC acted as exclusive financial advisor to the board of directors of Family Dollar in connection with the transaction. Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel to Family Dollar in connection with the transaction.
Dollar Tree, Inc., a Fortune 500 Company, operated 5,080 stores in 48 states and five Canadian Provinces as of May 3, 2014, with total retail selling square footage of 44 million. For more information, visit www.DollarTree.com.
Family Dollar Stores, Inc., a Fortune 500 Company, has more than 8,200 stores in rural and urban settings across 46 states. For more information, visit www.FamilyDollar.com.
SOURCE: Dollar Tree / Family Dollar