Family Dollar Sold To Dollar Tree

Family Dollar Sold To Dollar Tree
Family Dollar in Toledo, Ohio Nicholas Eckhart / Flickr CC BY 2.0
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Dollar Tree, Inc. has just completed the acquisition of Family Dollar, according to a statement made by both Dollar Tree, Inc. and Family Dollar, Inc. According to a presentation made by Dollar Tree for its shareholders last July 28, 2014, Family Dollar was purchased at about $74.50 per share, arriving at an estimated total of $9.2 billion.


As for the existing shareholders of Family Dollar, Inc., the terms of the acquisition stated that they are to receive $59.60 in cash as well as 0.2484 of share of Dollar Tree, Inc. common stock for each Family Dollar common stock share.

At the completion of the acquisition, Dollar Tree, Inc. Chief Executive Officer Bob Sasser could not be more prouder. He said, “We are pleased to announce we have completed our acquisition of Family Dollar and we formally welcome the Family Dollar team to the Dollar Tree organization. This is a transformational opportunity for our business to offer broader, more compelling merchandise assortments, with greater values, to a wider array of customers. This acquisition will extend our reach to low-income customers, while strengthening and diversifying our footprint. We plan to leverage best practices across both organizations to deliver significant cost synergies. Combined, our growth potential is enhanced with improved opportunities to increase store productivity and to open more stores across multiple banners.”

As the far the leadership structure goes for Family Dollar moving forward, pre-acquisition Family Dollar Chief Executive Officer Howard R. Levine will now be appointed to Dollar Tree Inc.’s board of directors. Meanwhile, Gary Philbin has just been appointed President and Chief Operating Officer of Family Dollar. Prior to the acquisition, he was the Senior Vice President of Stores for Dollar Tree. Both leadership appointments shall be made effective immediately.

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Sasser has expressed nothing but confidence in Family Dollar’s new chief operating officer. He said, “Gary has played an integral role in the success of Dollar Tree over the past fourteen years. Notably, Gary was instrumental in improving the Dollar Tree customer shopping experience and the related customer satisfaction, as well as leading the integration following our Canadian acquisition in 2010.”

Meanwhile, on his new appointment, Philbin has said, “I am very pleased to have the opportunity to lead the Family Dollar team. Throughout the due diligence and integration planning processes, I have been impressed with the experience, talent and dedication of the Family Dollar team members. Our focus as an organization will be on the customer – by consistently providing great values, affordable prices, and relevant items in a store environment that is convenient, clean, reliable and efficient. We are well-prepared for the integration process, which is now under way.”

Such an integration would result in the Dollar Tree being able to reach more areas and have even more stores. After all, based on the study Dollar Tree made for the presentation last year, Family Dollar has 8,246 stores, occupying about 7,500 to 9,500 sq ft of space each. Moreover, Family Dollar has a good foothold in the low to lower-middle income sector whereas, Dollar Tree appeals to a “broad range of Middle America.” Meanwhile, Dollar Tree originally has about 4,891 stores spread across the U.S. as well as 189 stores in Canada.

The Family Dollar acquisition is expected to grow Dollar Tree’s store network to 13,000 stores and bring in sales in excess of $19 billion annually. On the integration, Philbin said they are “well-prepared to integrate our two companies.” Furthermore, he added, “We appreciate the efforts, dedication and teamwork displayed by both Dollar Tree and Family Dollar associates throughout our integration planning processes.”