Chesapeake, VA — In a deal reportedly worth $8.5 billion in stock and cash, Dollar Tree, Inc. is acquiring Family Dollar Stores, Inc., establishing a 13,000 store chain with estimated annual sales exceeding $18 billion.
The acquisition has been unanimously approved by both companies’ boards and is expected to close by early 2015. Once complete, the combined company will operate 13,000 stores in 48 states and five Canadian provinces, Dollar Tree CEO Bob Sasser reports. He adds that Dollar Tree will continue to operate Family Dollar stores under that banner.
“This transaction is a transformational opportunity,” he says. “This acquisition will extend our reach to lower-income costumers and strengthen and diversify our store footprint. We plan to leverage best practices across both organizations to deliver significant synergies, while we accelerate and augment Family Dollar’s recently introduced strategic initiatives.”
Howard Levine, Family Dollar CEO, will remain with the company and report directly to Sasser, according to the acquiring firm. In addition, Levine will join the Dollar Tree Board of Directors upon closing.
“This combination will allow Family Dollar to accelerate efforts to improve business and will benefit our dedicated team members who will now be part of a larger, more diverse organization,” Levine says.