The Dollar Wars- Dollar Tree Buys Out Family Dollar

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**WarOne**

Discount store merger! So will this now be Dollar Family Tree or some other weird combination?

Years and years ago, I was genuinely enthralled as a little kid to be in a dollar store (or discount store like a Cheap John's). The store was big, had lots of strange stuff, and all of it really cheap.

I'm so jaded nowadays.

http://money.cnn.com/2014/07/28/news/companies/dollar-tree-family-dollar/

If everything in its stores costs a buck, it will take 8.5 billion items sold for Dollar Tree stores to buy rival Family Dollar.

Dollar Tree (DLTR) is buying its larger rival for $74.50 a share in cash and stock, 23% more than Family Dollar's closing price on Friday, for a total value of $8.5 billion.

Dollar Tree has 5,080 stores and annual revenue of $7.8 billion in its most recent fiscal year. Family Dollar has 8,200 stores and annual revenue of $10.4 billion.

The combined companies could overtake the leader in the dollar-store sector, Dollar General (DG), which has more than 11,000 stores and revenue of $17.5 billion.

Dollar Tree plans to continue to operate both the Dollar Tree and Family Dollar brands after the merger is completed. It expects the deal to close early next year.

A big winner in the deal is activist investor Carl Icahn, who holds 9.4% of Family Dollar shares, according to sales tracker LionShares. Icahn acquired most of the shares in the past year.

Shares of the company shot up in June when Icahn disclosed his stake, but have given back most of the gains since. The stock is down nearly 6% for the year through Friday's close.

Shares of Family Dollar (FDO) soared on the news in premarket trading.

**d-usa**

They paid more than $1 per share?

Disappointing...

**hotsauceman1**

Does this mean that the two coming together means they will be 2$ stores?

**Gentleman_Jellyfish**

Now presenting the Dollar & More store! Everything is either one dollar.. or more!

**curran12**

While not these dollar stores, all of this reminds me of Ashens' Poundland Specials. Those are always good times.

**Mr. Burning**

Hopefully there will be some cash for a customer education programme.

You know, for those gene pool rejects who ask 'how much is this?'. Like I witnessed recently at the 99p store.

**kronk**

At Family Dollar, everything isn't a dollar, though. It's just the name of the store.

**hotsauceman1**

Mr. Burning wrote:
Hopefully there will be some cash for a customer education programme.

You know, for those gene pool rejects who ask 'how much is this?'. Like I witnessed recently at the 99p store.

That is a fair question. I went to a $ store once, picked up one thing and it cost me 16$. his rationale? It has 16 pieces inside of it.

**Mr. Burning**

hotsauceman1 wrote:
Mr. Burning wrote:
Hopefully there will be some cash for a customer education programme.

You know, for those gene pool rejects who ask 'how much is this?'. Like I witnessed recently at the 99p store.

That is a fair question. I went to a $ store once, picked up one thing and it cost me 16$. his rationale? It has 16 pieces inside of it.

What you had was a broken finecast Bilbo and Golum and you were at a GW.

**Easy E**

I have heard that Dollar Stores are seriously cutting into the market share of places like Wal-Mart and other big box discount retailers.