Dollar Tree, Inc. (DLTR) announced on November 3, 2017 that it has agreed to acquire Family Dollar Stores, Inc.
(FDO) for $8 billion in cash and stock. This is the largest acquisition in Dollar Tree’s history and is expected to close in the first half of 2018.
According to the press release, Dollar Tree plans to keep the Family Dollar brand and operate it as a separate, independent company. In addition, the combined company is expected to have over 16,000 stores in the U.
S. and Canada.
The acquisition is seen as a strategic move for Dollar Tree as it seeks to expand its footprint into new markets and compete with larger retailers such as Walmart and Target. It is also expected to boost the company’s bottom line as Family Dollar is one of the leading discount chains in the U.
While the acquisition is seen as a positive move for Dollar Tree, some analysts are concerned about the potential impact on the company’s competitive environment. The combined company is expected to have a market share of around 23% and will be the largest discount retailer in the U.
