Dollar Tree – Family Dollar Merger Set to Close in July
Wednesday, May 27th, 2015
By: Steve Goldman, CCIM
We’ve been following Dollar Tree’s takeover of Family Dollar since they announced their intent last year to acquire the rival discount store in a cash-and-stock takeover proposal.
In April of this year, Dollar Tree said the $8.5 billion deal could close in May pending several factors, the largest being the Federal Trade Commission’s antitrust review.
But the closing date has been moved — this time to July — as we found out last week when Dollar Tree announced that they still have not received FTC approval for the merger (though the probe is now substantially complete).
As part of the review, the FTC is requiring Dollar Tree to sell 330 Family Dollar stores for competitive reasons. These stores represent $47 million of operating income. The locations of the stores and the names of buyers haven’t been released. Dollar Tree says it is making progress with the sales.
Even after the sale, the combination of these two chains would create the largest dollar store company in the country, with about $20 billion in revenue and 13,000 stores.
Dollar stores, like Dollar General, Family Dollar and Dollar Tree, are favorites of NNN investors because they deliver mailbox money with no landlord responsibilities.
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