Mega-deal: Dollar Tree to acquire Family Dollar
July 28, 2014,
Chesapeake, Va. – Dollar Tree this morning announced its intention to acquire Family Dollar, which will create an operation of more than 13,000 stores in 48 states and five Canadian provinces with annual sales of more than $18 billion.
Family Dollar is the 11th largest seller of home textiles in the U.S. with 2013 sales of approximately $430 million, according to H&TT research. Dollar Tree’s involvement with home textiles is much smaller, with 2013 sales of about $68 million.
"This is a transformational opportunity," said Bob Sasser, Dollar Tree's ceo.
The company will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands as well as the Family Dollar nameplate. Family Dollar chairman and ceo Howard Levine will remain with the company, reporting directly to Sasser.
Dollar Tree targets middle-class consumers primarily in suburban areas. Family Dollar’s core customers are low- and lower-middle income households in urban and rural locations.