Dollar Tree Inc., one of the largest businesses calling Hampton Roads home, would more than double its business when it buys Family Dollar Stores Inc.
According to the Virginia Pilot, “Chesapeake-based Dollar Tree announced Monday that it plans to buy Family Dollar in a deal worth $8.5 billion in cash and stock, plus about $700 million in assumed debt and other cash investment.
“With the purchase, it would grow from 5,080 stores to more than 13,000 in North America, giving it more stores than any other discount chain.
“Annual combined sales of the two discounters would top $18 billion, vaulting Dollar Tree past Smithfield Foods Inc. and Norfolk Southern Corp. to become the largest locally based corporation. At that level, Dollar Tree would rank 156th on the Fortune 500 list of the nation’s largest companies. It currently stands at 342nd, with $7.84 billion in sales in 2013, and Family Dollar ranks at 271 with $10.4 billion in sales last year.
“Combined profit would total $2 billion, the companies projected. Dollar Tree expects to gain an annual $300 million within three years through “synergies” in logistics and distribution and the increased buying power of a larger operation.
“This acquisition is transformational,” Bob Sasser, Dollar Tree’s CEO, said during a conference call Monday morning with analysts.
“We will utilize the size and scale of the new company to serve a broader range of customers in more ways.”
The Pilot says, “Dollar Tree has 51 stores in Hampton Roads, including those in its self-named chain that sells everything for $1 and eight Deals stores that carry items at higher prices. Family Dollar, based in Matthews, N.C., has 47 stores in Richmond area.”
“Together, the combined company would employ more than 145,000 people.” Quotes by Carolyn Shapiro – Virginia Pilot