Dollar Tree is buying competitor Family Dollar in a cash-and-stock deal worth about $8.5 billion. The boards of both companies unanimously approved the merger, announced Monday. The transaction is valued at $74.50 a share. Dollar Tree CEO Bob Sasser called the deal a "transformational opportunity." "This acquisition will extend our reach to lower-income customers and strengthen and diversify our store footprint," he said. Family Dollar CEO Howard Levine will report to Sasser. Levine's company will continue to operate under the Family Dollar name. The combined company will have more than 13,000 stores and $18 billion in sales.
Chesapeake, Va. -- Dollar Tree has approved a 2-for-1 stock split in the form of a 100% common stock dividend. The new shares will be distributed June 26 for shareholders of record as of the close of business on June 12. With the stock split, the number of outstanding shares of the company's common stock will increase from approximately 116 million shares, pre-split, to approximately 232 million shares, post-split. “Dollar Tree is committed to building value for long-term shareholders,” stated Bob Sasser, president and CEO. “The stock dividend announced today is designed to increase the liquidity of the company's
Chesapeake, Va. -- Dollar Tree reported Thursday that profit for the third quarter rose 12.1% to $104.5 million, from $93.2 million a year earlier. Revenue rose 11.9% to $1.6 billion, surpassing Wall Street’s expected $1.58 billion. Performance has been consistent with the strength of the category, as the discounter has recorded double-digit year-over-year percentage revenue increases over the past five quarters. Same-store sales rose 4.8% in the third quarter. "I am very pleased with the company’s performance in the third quarter," said president and CEO Bob Sasser. “Dollar Tree achieved double-digit growth in sales, operating margin and earnings per