The Battle of the Dollar Store Acquisition

The much anticipated vote by Family Dollar’s shareholders regarding a proposed acquisition from Dollar Tree will have to wait a little longer.

Dollar Tree originally submitted the $8.5 billion bid to acquire Family Dollar in July of 2014 only to have Dollar General, less than a month later, submit a competing bid at $9.1 billion. The deal has been held in limbo by Family Dollar shareholders and the Federal Trade Commission since then.

The shareholders’ vote on the Dollar Tree bid was originally set for December 23, 2014, but was postponed at the last minute to January 22, 2015. It appears the delay is due to lack of shareholder support for the Dollar Tree bid. This delay gives Dollar General time to iron out the details of their bid with the FTC before shareholders make a final decision, possibly stealing the deal away from Dollar Tree.

The net lease market for dollar stores remains in limbo until the final verdict is heard. It is rumored that a Dollar General acquisition would result in the closing of more than 1500 stores, while Dollar Tree would need to close only 300.

All eyes will be on Family Dollar on January 22nd, as we eagerly await their decision.

KW Net Lease Advisors