Dollar Tree officially owns Family Dollar.
In a statement Monday, Virginia-based Dollar Tree said it has completed its $8.5 billion purchase of Family Dollar, based in the Charlotte suburb of Matthews, drawing to a close a yearlong takeover saga that included a separate buyout attempt from another discount retailer, Dollar General.
It also effectively ends local ownership of the homegrown retail chain that traces its roots back to 1959, when Leon Levine opened the first Family Dollar store with a $6,000 loan.
Bob Sasser, Dollar Tree’s chief executive officer, called the deal a “transformational opportunity” that will allow the company to offer merchandise to a wider array of customers.
“This acquisition will extend our reach to low-income customers, while strengthening and diversifying our footprint,” Sasser said in the statement.
As part of the deal, Family Dollar shareholders will receive $59.60 in cash and about 0.25 of a share of Dollar Tree common stock for each share of Family Dollar common stock they own.
Last week, federal regulators approved the $8.5 billion sale of the company to Chesapeake, Va.-based Dollar Tree — one of the last steps necessary to complete the deal. The two companies said in separate securities filings that the deal is subject to completion of certain closing conditions, and that it is anticipated to close July 6.
As part of the deal, Dollar Tree will sell 330 Family Dollar stores to a New York private-equity firm called Sycamore Partners within 150 days of the deal’s close. The firm said in May that it plans to operate the divested stores under the banner Dollar Express.
For the Family Dollar stores that remain, Dollar Tree has said that it will keep the chain’s name. Dollar Tree also said it will maintain Family Dollar’s headquarters