Dollar Tree, North America's operator of discount variety stores announced, that it has completed the acquisition of Family Dollar Stores, Inc.Family Dollar Stores, Inc., a leading national discount retailer offering name brands and quality, private brand merchandise. Family Dollar shareholders are entitled to receive $59.60 in cash and 0.2484 of a share of Dollar Tree common stock for each share of Family Dollar common stock.
"This is a transformational opportunity for our business to offer broader, more compelling merchandise assortments, with greater values, to a wider array of customers. This acquisition will extend our reach to low-income customers, while strengthening and diversifying our footprint. We plan to leverage best practices across both organizations to deliver significant cost synergies. Combined, our growth potential is enhanced with improved opportunities to increase store productivity and to open more stores across multiple banners," stated Bob Sasser, Chief Executive Officer.
The Company also announced that Gary Philbin has been named President and Chief Operating Officer of Family Dollar. Mr. Philbin joined Dollar Tree as Senior Vice President of Stores in December 2001, and was later promoted to Chief Operating Officer in March 2007 and to President in June 2013. Prior to joining Dollar Tree, Mr. Philbin held senior-level positions in both merchandising and operations during his thirty years in the retail grocery industry.
The combined organization will operate more than 13,000 stores in 48 states and five Canadian provinces, with sales exceeding $19 billion annually. It intends to retain and to grow both banners going forward and will optimize the combined real estate portfolio.