Dollar Tree to buy Family Dollar for about $8.5 billion
SEAFOODNEWS.COM [Wall Street Journal] By Anna Prior - July 28, 2014 -
Dollar Tree Inc. said it will acquire Family Dollar Stores Inc. in a cash-and-stock deal that values the discount retailer at about $8.5 billion
The combined company will continue to operate the Dollar Tree and Family Dollar brands, and the deal is expected to add to cash per-share earnings within the first year after it is completed. The combined company is expected to record about $300 million in synergies by the end of the third year following the deal's closing.
The deal comes as activist investor Carl Icahn has been pushing for a sale of Family Dollar and threatening to replace the discount retailer's board. Mr. Icahn has amassed a nearly 9.4% stake in Family Dollar, according to a recent regulatory filing.
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