Dollar Tree, Family Dollar Deal Closing Delayed as FTC Reviews Store Counts

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Family Dollar's logo, nameplate to remain the same

Family Dollar’s logo, nameplate to remain the same

Charlotte, NC—The much contested acquisition of Family Dollar Stores by rival Dollar Tree Inc. appears to be delayed until late April as the Federal Trade Commission reviews more than 500 stores as part of the $8.7 billion acquisition.

Dollar Tree had said it hoped to finalize the deal by April 27, when Family Dollar would become its subsidiary. The deal was initially slated to close in early March.

The delay centers around the FTC’s review of the acquisition agreement and a decision on how many stores may have to be divested before the deal can close. Dollar Tree said the Federal Trade Commission is reviewing more than 500 stores and Dollar Tree is expected to reach an agreement by the end of this month on just how many stores may have to be divested.

Dollar Tree previously disclosed that it anticipated that it would be required to divest no more than roughly 300 stores, “and the company continues to believe this to be true,” according to a recent SEC filing. The actual number of possible divestitures may be above or below 300 stores.

Dollar Tree also stated that if all stores under review are required to be divested, it would “represent no more than between $75 million and $82 million” in its adjusted earnings before taxes.

The figure also may be lower if fewer stores need to be divested.

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