Dollar General Bids for Family Dollar | License Global

Dollar General Bids for Family Dollar

Following Dollar Tree's announcement at the end of July that it had bought rival Family Dollar, Dollar General has offered a counter-bid for the discount chain.

Dollar General has offered to acquire Family Dollar Stores for $78.50 per share in cash, a transaction valued at $9.7 billion. The all-cash proposal comes in above Dollar Tree's bid of $74.50 per share from July 28.

A merger with Family Dollar would solidify Dollar General's position as the largest small-box discount retailer in the U.S. with nearly 20,000 stores in 46 states and sales of over $28 billion.

"For Family Dollar shareholders, our proposal is financially superior to the current transaction agreement with Dollar Tree and would provide Family Dollar shareholders with a substantial premium and immediate liquidity for their shares," says Rick Dreiling, chairman and chief executive officer, Dollar General. "For Dollar General shareholders, the proposed combination of Dollar General and Family Dollar would be a significant strategic opportunity to create immediate and lasting shareholder value. For both Dollar General and Family Dollar customers, we would be able to provide better value and greater selection."

For more on the initial Dollar Tree/Family Dollar merger agreement, click here.