Dollar Tree, Inc. will have to divest 340 stores to complete its merger with Family Dollar, according to a statement filed with the United States Securities and Exchange Commission. According to the filing, most or all of those stores slated for divesture operate under the Family Dollar nameplate.
As the Federal Trade Commission’s review process regarding Dollar Tree’s pending acquisition of Family Dollar Stores, Inc. has proceeded, agency staff identified about 340 stores for divestiture, Dollar Tree noted. The stores generate approximately $47.4 million of operating income, the company added.
Dollar Tree insisted that it continues to make progress with divestiture buyers and has received multiple indications of interest from potential purchasers who expressed an intent to operate the store locations shed as dollar stores and, therefore to address FTC concerns.
Dollar Tree pointed out that it is working to finalize divestiture agreements with the selected bidders this month and, in parallel, to secure FTC approval. Dollar Tree intends to close the proposed merger in May 2015, subject to certain factors including FTC approval, stated the company.