Dollar Tree Buys Family Dollar

Dollar Tree is buying rival discount store Family Dollar in a cash-and-stock deal valued at about $8.5 billion.

NBC says the deal comes amid pressure on Family Dollar by the activist investor Carl C. Icahn, who urged the company last month to explore a sale of itself. But Family Dollar said in a statement that it had been exploring strategic options since the winter.

Under the terms of Monday’s deal, Dollar Tree will pay $74.50 for each share of Family Dollar. The bid is made up of $59.60 a share in cash and Dollar Tree stock worth about $14.90. Including debt, the deal values the target company at about $9.2 billion. The bid represents a premium of nearly 23 percent to Family Dollar’s closing price on Friday.

There’s no word yet on whether Dollar Tree will convert the Bradford Family Dollar in Union Square into a Dollar Tree.

The news leader of the Twin Tiers ... since 1947

Comments

Popular posts from this blog

Former Host of WESB Show
Passes Away at Age 97

Casey Statement on VAWA Passage

Cuomo Signs New Gun Laws