Dollar Tree Acquires Family Dollar
– July 28, 2014 8:00 am
Dollar Tree will purchase Family Dollar in an effort to diversify it’s product offering and customer base.
The Chesapeake, Va. – based retail chain said the acquisition would produce annual sales of more than $18 billion in more than 13,000 stores across the U.S. The cash and stock transaction is worth $8.5 billion, according to the Associated Press.
Here’s a statement from Dollar Tree CEO Bob Sasser:
“This is a transformational opportunity,” stated Bob Sasser, Dollar Tree’s Chief Executive Officer. “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. Throughout our history, we have strived continuously to evolve and improve our business. This acquisition, which enhances our footprint and diversifies our company, will enable us to build on that progression, and importantly, positions Dollar Tree 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.
Dollar Tree has a long record of consistent, profitable growth, strong financial performance, prudent capital management, and outstanding total shareholder returns. The acquisition of Family Dollar is consistent with our vision to be the leader in value retailing.”
Dollar Tree brands itself as the leading fixed price retailer in the nation, selling everything in its stores for under $1, with its stores in suburban areas targeting middle income residents. Family Dollar sells a mixture of groceries and home goods at various prices, and has stores in lower income areas in urban and rural locations, according to a press release.
The acquisition is expected to be complete early next year. Afterward, the company will have more than 145,000 associates.
The company plans to use cash from the acquisition to pay down debt, grow its presence in existing markets, and expand to new markets.
Dollar Tree has multiple locations in the region. Family Dollar has four stores in Woodbridge, three in Manassas, and one in North Stafford.