With Dollar Tree's agreement to purchase Family Dollar on Monday, two of the United States' biggest discount stores are coming together in a deal estimated at $8.5 billion in cash and stock.
The New York Times reports:
"The deal comes amid pressure on Family Dollar by the activist investor Carl C. Icahn, who urged the company last month toexplore a sale of itself. But Family Dollar said in a statement that it had been exploring strategic options since the winter.
"Under the terms of Monday's deal, Dollar Tree will pay $74.50 for each share of Family Dollar. The bid is made up of $59.60 a share in cash and Dollar Tree stock worth about $14.90. Including debt, the deal values the target company at about $9.2 billion.
"The bid represents a premium of nearly 23 percent to Family Dollar's closing price on Friday."