"By adding Family Dollar to our portfolio of brands, Dollar Tree will soon operate more than 13,000 stores in 48 states and five Canadian provinces with annual sales exceeding $18 billion,” a top Dollar Tree official said.
Bob Sasser, Dollar Tree's CEO noted, "The vote of approval by Family Dollar shareholders represents a crucial step toward combining Dollar Tree with Family Dollar.”
According to Sasser, the merger enhances its geographic footprint and diversifies its business model and it intends to operate and grow both banners.
At Dollar Tree stores, everything is $1 while Family Dollar stores will continue to serve with name brand consumables, home basics, variety and seasonal products at discount store prices.
“By utilising the $1 fixed-price point in Dollar Tree and multi-price points at Family Dollar, we will deliver even greater value and choice to a broader range of consumers," he added
Sasser added, "We appreciate the dedication and hard work of Family Dollar's associates throughout the integration planning process and we look forward to working together.”
By the end of January, Dollar Tree expects to reach a preliminary agreement with the Federal Trade Commission (FTC) staff on the list of substantially all of the stores to be divested.
Dollar Tree then plans to finalise divestiture agreements to address any concerns of the investigating state attorneys general, and to execute a consent order with the FTC's Bureau of Competition.
To facilitate the FTC's review and in light of the practicalities associated with the transaction, Dollar Tree and Family Dollar have agreed to provide the FTC with four weeks' notice prior to closing.
Dollar Tree expects to initiate this 4-week notice period, after it executes a consent decree with the FTC's Bureau of Competition, which should enable the closing of the merger as soon as March 2015.
Dollar Tree, a Fortune 500 Company, operated 5,282 stores in 48 states and five Canadian provinces as of November 1, 2014, with total retail selling square footage of 45.8 million. (AR)
