Jan
22

Family Dollar Shareholders Approve Dollar Tree Merger

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FD megerIt’s the end of an era for Family Dollar Stores Inc. The Matthews-based discount retailer’s shareholders voted Thursday morning in favor of an $8.5 billion merger with Dollar Tree Inc.

“With this vote we are closing an impressive chapter for Family Dollar and beginning a new exciting chapter,” Family Dollar CEO Howard Levine said this morning.

The cash-and-stock transaction could close in March. It is valued at approximately $76.50 per share. Family Dollar shareholders will receive $59.60 per share in cash. The remainder, roughly 20 percent, will be paid in Dollar Tree stock.

The total is up from the initial bid of $74.50 per share because Dollar Tree’s shares have continued to trade higher since the proposed merger was announced in late July. The price also represents a nearly 32 percent premium from the $58.04 that Family Dollar’s shares were trading at the day before the deal was announced. Family Dollar’s stock closed at $75.55 on Wednesday.

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