Dollar Tree, Inc.NASDAQ
Go Long Dollar Tree - A Stable Retailer Potentially Undervalued By 70%
Luis V. Sanchez • 18 Comments
Luis V. Sanchez • 18 Comments
Jul. 3, 2015, 1:59 AM
- Putting to rest a year-long merger saga, Dollar Tree (NASDAQ:DLTR) has finally been given FTC approval to buy Family Dollar (NYSE:FDO) on condition they sell 330 Family Dollar stores.
- Following the $9.2B merger, Dollar Tree will control more than 13K stores across the U.S. and Canada, vaulting the company ahead of Dollar General (NYSE:DG) to become North America's biggest discount retailer, with more than $18B in annual sales.
- Dollar Tree expects the deal to close on Monday.
- Previously: DLTR, FDO ink deal with FTC; merger on track for July close (Jun. 16 2015)
Jun. 16, 2015, 5:34 PM
- Dollar Tree (NASDAQ:DLTR) and Family Dollar (NYSE:FDO) have "signed an Agreement Containing Consent Orders proposed by the staff of the [FTC]." The agreement, which remains subject to final approval by FTC commissioners, would allow Dollar Tree to acquire Family Dollar as long as it sells 330 Family Dollar stores "within a specified period" following the deal's closing. (8-K filing)
- The companies reiterate they expect the merger to close in early July. In May, DLTR/FDO announced they're selling 330 Family Dollar stores to P-E firm Sycamore Partners, in order to gain antitrust approval.
May 29, 2015, 5:34 PM
- Dollar Tree (NASDAQ:DLTR) agrees to sell 330 Family Dollar Stores (NYSE:FDO) stores to P-E firm Sycamore Partners to help gain antitrust approval for its $8.5B takeover of FDO.
- DLTR says the stores represent $45.5M of operating income for FDO, and that Sycamore intends to operate the stores under the Dollar Express name.
- DLTR says it hopes to close the merger in early July after securing FTC clearance.
Apr. 7, 2015, 5:49 PM
- Dollar Tree (NASDAQ:DLTR) says that the FTC has "substantially completed" its review of the company's $8.5B acquisition of Family Dollar (NYSE:FDO) and has identified about 340 stores to be divested, from a pool of about 500 locations reviewed.
- All or nearly all of the divestments should be Family Dollar stores, which the combined entity would sell to one or more of "multiple" interested buyers who would operate them as dollar stores. It was the low number of divestitures that prompted FDO shareholders to take a lower offer from Dollar Tree vs. the bid from Dollar General (NYSE:DG).
- In its 8-K, Dollar Tree says it hopes to close the merger in May.
- Family Dollar is part of earnings season's kickoff tomorrow, reporting before the bell. Analysts expect EPS of $0.73 on $2.8B in revenues.
- After hours: DLTR -0.7%.
- Previously: Dollar Tree says FTC reviewing more stores (Feb. 03 2015)
- Previously: Deal done: Dollar Tree lands Family Dollar (Jan. 22 2015)
Feb. 3, 2015, 5:44 PM
- Dollar Tree (NASDAQ:DLTR) says it has learned the FTC is reviewing more than 500 stores as it scrutinizes its plan to acquire Family Dollar (NYSE:FDO), after previously believing that the FTC would require the divestiture of no more than ~300 stores, according to an SEC filing.
- Despite the caution, DLTR still expects the total number of divestitures to be about 300, and hopes to reach an agreement with the FTC by the end of the month.
- FDO shareholders approved a deal last month to be sold to DLTR, choosing regulatory certainty over a riskier but higher offer from Dollar General (NYSE:DG).
Jan. 22, 2015, 9:38 AM
- Shareholders with Family Dollar (NYSE:FDO) have approved the merger offer from Dollar Tree (DLTR +1.8%) as expected.
- 74% of shareholders approved the merger of the discounters.
- FDO trades at $76.20 vs. the buyout price of $74.50.
- Shares of Dollar General (NYSE:DG) are taking the news well, up 2.4% in early trading.
Jan. 22, 2015, 2:18 AM
- Family Dollar (NYSE:FDO) shareholders are expected to vote today in favor of a pending $8.5B merger with Dollar Tree (NASDAQ:DLTR) despite a higher $9.1B offer from Dollar General (NYSE:DG) still on the table, Reuters reports.
- Family Dollar and two influential proxy firms are pushing for the deal with Dollar Tree, which said it would divest as many outlets as required to get antitrust approval.
- Dollar General has said it would only shed up to 1,500 stores.
- Previously: Proxy firms back Dollar Tree's bid for Family Dollar (Jan. 15 2015)
- Previously: Family Dollar sticks with Dollar Tree recommendation (Jan. 12 2015)
Jan. 15, 2015, 3:13 AM
- Changing their previous stance, two influential proxy firms, Institutional Shareholder Services and Glass Lewis & Co, have advised Family Dollar (NYSE:FDO) shareholders to vote for the retailer's acquisition by Dollar Tree (NASDAQ:DLTR), saying it was more likely to close as it faced fewer antitrust hurdles.
- Previously, Dollar Tree had said it would divest as many outlets as required to get antitrust approval for the deal, while Dollar General (NYSE:DG) stuck to its offer to shed up to 1,500 stores.
Dec. 23, 2014, 10:31 AM
- The Family Dollar (FDO +0.2%) shareholder meeting has been adjourned to January 22, according to the Charlotte Observer.
- The delay was expected with the FTC yet to finalize its ruling on the amount of store closings it requires in a Dollar General (DG +1%) acquisition of Family Dollar.
- Recap: Dollar General is in with a $9.1B offer for FDO to top the $8.5B Dollar Tree (DLTR +0.9%) bid which is preferred by the target's board
Nov. 19, 2014, 5:13 AM
- Dollar General (NYSE:DG) may have to divest more than 4,000 stores, more than double the 1,500 stores it said it was willing to sell, if it wants to gain regulatory approval to buy Family Dollar (NYSE:FDO), reports The New York Post.
- Getting the FTC to change its mind could take months, but rival Dollar Tree (NASDAQ:DLTR) wants a vote on its proposed Family Dollar merger by Dec. 31.
- Without the time to explain its case to the FTC, Dollar General could be forced to either raise its bid or live with the added number of divestitures.
- DG -1.8% premarket
Oct. 10, 2014, 5:31 PM
- The FTC has issued a second request for additional info to Dollar General (NYSE:DG) regarding its $9.1B buyout offer for Family Dollar (NYSE:FDO). State AGs have already been probing the bid on antitrust grounds.
- DG -1.2% AH. For now, Family Dollar continues supporting Dollar Tree's (NASDAQ:DLTR) $8.5B offer.
Sep. 17, 2014, 9:07 AM
- Family Dollar (NYSE:FDO) recommends shareholders pass on the tender offer of Dollar General (NYSE:DG) as it continues to throw its support behind a merger with Dollar Tree (NASDAQ:DLTR) which it sees as more likely to clear regulatory hurdles.
- The company maintains the $80-per-share offer from Dollar General is "highly conditional" and illusory in nature.
Sep. 10, 2014, 1:51 AM
- Following the rejection of its second bid for rival Family Dollar (NYSE:FDO), Dollar General (NYSE:DG) is preparing to go hostile, taking its $9.1B offer directly to shareholders.
- Family Dollar rejected Dollar General's bids citing antitrust risks, and wants DG to assume the entire risk of the deal, such as carrying out any divestiture that antitrust regulators ask for.
- While Dollar General believes it has already offered far more divestitures than is necessary, it has not gone as far as Dollar Tree (NASDAQ:DLTR) which has included a commitment to divest as many stores as necessary to clear antitrust hurdles.
Sep. 5, 2014, 8:55 AM
- Citing antitrust concerns, the Family Dollar (NYSE:FDO) board rejects Dollar General's (NYSE:DG) latest bid, which came at a 7.4% premium to Dollar Tree's (NASDAQ:DLTR) buyout price.
- "There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process," says Family Dollar boss Howard Levine.
- Family Dollar and Dollar Tree amend their merger agreement, with Dollar Tree committing to divest as many stores as necessary to receive antitrust clearance. The two also accelerate their expectations for closing the deal to as early as the end of November.
- FDO -0.8%, DG -1.4%, DLTR -1.4% premarket
Sep. 2, 2014, 9:07 AM
- Family Dollar (NYSE:FDO) indicates it will review the updated offer from Dollar General (NYSE:DG) with advisers before it will offer a recommendation to shareholders.
- The Dollar General bid commands a 7.4% premium over what discounter peer Dollar Tree (NASDAQ:DLTR) offered up and includes a commitment to shed up to 1.5K stores.
- Retail analysts think the ample competition in the supercenter/superstore/supermarket space will keep regulators largely at bay as they evaluate the potential combination of the two dollar store chains.
- FDO +0.8% to $80.45, a shade above the $80 bid price from Dollar General, in an indication that some investors are betting yet another offer could come down the road.
Aug. 21, 2014, 8:14 AM
- Shares of Family Dollar (NYSE:FDO) are lower in early trading after the company confirms reports that is has rejected a $78.50-per-share offer from Dollar General.
- The company says it has antitrust concerns about the combination.
- The board has reaffirmed that it supports the company merging with Dollar Tree (NASDAQ:DLTR).
- Premarket: Dollar Tree -1.8%, Family Dollar -0.5%, Dollar General (NYSE:DG) -1.1%.