Dollar Tree to sell 330 Family Dollar stores
May 21, 2015, 7:12 AM
NEW YORK (AP) — Dollar Tree expects to reach a deal in the coming days to sell about 330 Family Dollar stores in order to receive approval of its $8.5 billion acquisition of Family Dollar.
The dollar-store chain did not name the possible buyer for the Family Dollar stores or which locations would be sold. The Federal Trade Commission is requiring Dollar Tree to sell the stores.
The 330 Family Dollar stores represent about $45.5 million in operating income, Dollar Tree said.
Even after selling the stores, a combination of Dollar Tree and Family Dollar would create the largest dollar store company in the country with more than 13,000 stores. Dollar Tree, which is headquartered in Chesapeake, Virginia, currently operates 5,450 stores and Family Dollar, based in Matthews, North Carolina, has more than 8,000. Rival Dollar General Corp., which failed in its bid to buy Family Dollar, has nearly 12,000 stores.
Dollar Tree now expects its acquisition of Family Dollar Stores Inc. to close in early July.
Also Thursday, the company tweaked its earnings outlook for the year, below what Wall Street analysts expected, as sales slipped due to the West Coast port strike that delayed merchandise.
Dollar Tree now expects adjusted earnings between $3.32 per share and $3.47 per share, compared with its previous forecast between $3.30 per share and $3.50 per share. Analysts expected earnings of $3.51 per share, according to FactSet.
Dollar Tree now expects 2015 revenue between $9.24 billion and $9.42 billion, compared with its previous forecast between $9.21 billion to $9.45 billion. Analysts expected revenue of $9.42 billion.
Shares of Dollar Tree Inc. rose $1.74, or 2.3 percent, to $78 in morning trading Thursday. Family Dollar shares rose 35 cents to $77.47 Thursday morning.
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