Monday, July 28, 2014

Two Dollars Make One: Merger Creates Mega-Dollar Store

Posted By on Mon, Jul 28, 2014 at 9:18 AM

Yes, it cost $1 ... and 8,499,999,999 more.

In a mega-merger of the nation's mega-discount stores, Dollar Tree will transfer $8.5 billion in cash and stock to take over Family Dollar. For now, Family Dollar says it will continue to operate its stores under the original name.

In April, Family Dollar CEO Howard Levin famously told Wall Street analysts that his company had "lost its way" amid management changes and "misfired" changes to the company's pricing strategy. That's when Levin hired Morgan Stanley to review the company's options and takeover offers.

Upon the news, Family Dollar shares rose instantly this morning on the New York Stock Exchange, jumping more than 22 percent in value.

The new merger will result in a total of more than 13,000 stores across the U.S. and Canada, with 145,000 employees.

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