The strategic acquisition is intended to expand Dollar Tree’s reach from Middle America suburban neighborhoods to low- and lower-income customers in urban and rural regions. Additionally, Family Dollars’ assortment of home and consumable merchandise is expected to complement Dollar Tree’s focus on variety and seasonal products.
Stores will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands. Once the transaction is finalized early next year, the company will operate under the Family Dollar brand as well. Combined, the two value-focused entities will have more than 13,000 stores in 48 states and in Canada.
Bob Sasser, Dollar Tree CEO, described the acquisition as a “transformational opportunity.” He added, “Throughout our history, we have strived continuously to evolve and improve our business. This acquisition, which enhances our footprint and diversifies our company, will enable us to build on that progression, and importantly, positions Dollar Tree for accelerated growth.”
Family Dollar chairman and CEO Howard R. Levine will stay on board and will report directly to Sasser. Levine will also become a Dollar Tree board member.