Dollar Tree, Inc. acquries Family Dollar

Dollar Tree, Inc. acquries Family Dollar

Dollar Tree, Inc. acquries Family Dollar

Everything for 1$ american chain Dollar Tree made a deal about acquiring variety store chain Family Dollar for $8.5 Billion.

“This is a transformational opportunity,” said Dollar Tree CEO Bob Sasser. “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.”added

Under the terms of the transaction, Family Dollar shareholders will receive $74.50 in cash and stock deal, it means   $59.60 in cash and $14.90 in Dollar Tree stock. If the average trading price of Dollar Tree stock during this period is between $49.08 and $59.98, Family Dollar shareholders will receive a number of shares between 0.2484 and 0.3036 equal to $14.90 in value. The transaction values Family Dollar at an enterprise value of approximately $9.2 billion.

Dollar Tree advisors were JPMorgan Chase and the law firms Wachtell, Lipton, Rosen & Katz and Williams Mullen. Advisors of Family Dollar were Morgan Stanley and law firm Cleary Gottlieb Steen & Hamilton.

Mr. Stakebay says:

This move will create leading discount reatiler in North America with broader range of customers and geographies and generates significant synergy opportunities with improved growth prospects. The companies are expecting about $300 Million in annual cost savings during first three years.

CEO of Dollar Tree ……………………………….. Bob Sasser ………………………………(2004-present)………………… $ 7 218 363 (2013)

CEO and Chairman of Family Dollar…………. Howard R. Levine…………………………..(1997-present)…………………$ 5 452 577 (2013)

 

DOLLAR TREE 

FAMILY DOLLAR 

Revenue

$7.84 billion (2013)

10.39 billion (2013)

Operating income

$970. 3 million (2013)

687.96 million (2013)

Profit

$596.7 million (2013)

443. 56 million (2013)

Total assets

$2.77 billion (2013)

3.71billion (2013)

Total Equity

$1.17 billion (2013)

1.59 billion (2013)

Employees

87400 (2013)

34 000(2013)

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