Dollar Tree Buys Dollar Family for $8.5B

Dollar Tree Inc. has agreed to purchase Family Dollar Stores Inc. for $8.5 billion. Now that the two dollar-store competitors have merged, they will have 13,000 locations across the United States and Canada. The newly merged dollar store will now be the largest discount retailer in North America, outnumbering Walmart and Dollar General Corp. stores, which have 11,000 locations each. The merger occurred after a push from Family Dollar’s billionaire investor, Carl Icahn who wanted the struggling chain to sell itself. CEO Howard Levine had been hesitant to sell his father’s company. However, Joseph Feldman, an analyst at Telsey Advisory Group in New York, said “It’s a more natural evolution than anything else. Family Dollar has been under some pressure for some time.”