Discount store chain Dollar Tree said Monday it plans to acquire rival Family Dollar Stores, backed by Trian Partners, for about $8.5 billion, reports Reuters. The transaction will result in “creating North America’s biggest discount retailer.”
JPMorgan Chase Bank provided bridge financing to back the deal. J.P. Morgan Securities is serving as financial advisor to Dollar Tree while Morgan Stanley is advising Family Dollar.
In a statement about the acquisition, Bob Sasser, Dollar Tree’s CEO, said: “This acquisition will extend our reach to lower-income customers and strengthen and diversify our store footprint.”
Based in Charlotte, NC, Family Dollar’s backers also include Carl Icahn. According to Reuters, Icahn, who is Family Dollar’s largest shareholder with a 9.4 percent stake in the firm, has been pressuring the company to sell itself.
Photo credit courtesy of Tupungato/Shutterstock.
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