Dollar Tree Inc. is putting $8.5 billion of its dollars toward buying Family Dollar Stores Inc.
Chesapeake, Virginia-based Dollar Tree (NASDAQ:DLTR) is buying the Matthews, North Carolina-based Family Dollar (NYSE:FDO) for $74.50 a share in a deal expected to close in 2015. Both chains would continue to operate and the combined company would have more than 13,000 stores.
More details can be found here.
Dollar Tree has 26 stores in Central Ohio. Family Dollar has 49 stores in the area. Earlier this year, it announced plans to close 370 stores in the U.S. but this month said none of those closings would be around here.
Also of local interest, both chains are competitors to Columbus-based Big Lots Inc. (NYSE:BIG) in the discount space, though each brand has its own twist on the business. Dollar Tree sells everything for a dollar or less. Family Dollar sells discounted name brand and private label food, health and beauty products and household goods. Big Lots sells discounted name brand and private label food and other goods, but also sells higher ticket items like furniture and mattresses. Big Lots has almost 1,500 stores in the U.S.
