Dollar Tree buying Family Dollar
NEW YORK (CNNMoney) — 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 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.
Combined, the two chains have more than 13,000 stores and annual revenue of $18 billion. That would surpass the current leader in the dollar-store sector, Dollar General, 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.