SUBSCRIBE

Breaking News on Food & Beverage Development - North AmericaEU edition | Asian edition

News > Markets

News in brief

Dollar General trumps Dollar Tree bid with $9.7bn offer to acquire Family Dollar

Dollar General trumps Dollar Tree with $9.7bn offer for Family Dollar

Dollar General has made a $78.50 per share cash offer to buy Family Dollar, trumping a $74.50/share offer made by Dollar Tree last month.

Should Dollar General’s bid prove successful, the combined brands would generate sales topping $28bn and will operate almost 20,000 stores in 46 states.

Dollar General, which is based in Goodlettsville, Tennessee, is the largest discount retailer in the US operating 11,000+ stores in 40 states; Family Dollar, which is based in Matthews, North Carolina, operates more than 8,000 stores.

Dollar General CEO Rick Dreiling said that the “business models and product mixes of Dollar General and Family Dollar are highly complementary”.

The deal would generate synergies of $550m to $600m on an annual run-rate three years post-closing, added Dreiling, who said Dollar General would be willing to divest up to 700 stores to appease regulators: “There is opportunity to more efficiently and effectively manage the Family Dollar portfolio of stores given Dollar General's strong track record of success in improving its own profitability since 2008."

In a letter to Family Dollar CEO Howard Levine, Dreiling said: “We were surprised and disappointed to find out you had entered into a merger agreement with Dollar Tree. Not only is our offer superior in price, it is 100% cash, as compared to the mix of cash and stock being offered by Dollar Tree.”

Click HERE to read the text of the letter in full. 

Subscribe to our FREE newsletter

Get FREE access to authoritative breaking news, videos, podcasts, webinars and white papers. SUBSCRIBE

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Key Industry Events

 

Access all events listing

Our events, Events from partners...