Family Dollar Stores, Inc., a leading national discount retailer offering name brands and quality, private brand merchandise, today confirmed that it has received a revised, non-binding, unsolicited proposal from Dollar General to acquire all of the outstanding common shares of Family Dollar.
Consistent with its fiduciary duties and subject to the terms of its existing merger agreement with Dollar Tree, Inc., Family Dollar’s Board of Directors, in consultation with its legal and financial advisors, will review and consider the revised proposal.
The Company’s Board of Directors has not changed its recommendation in support of the merger with Dollar Tree. Family Dollar will have no further comment on Dollar General’s proposal until the Board has completed its review.
As announced on July 28, 2014, Family Dollar entered into a definitive merger agreement with Dollar Tree, Inc., the nation’s leading operator of discount variety stores selling everything for $1 or less, under which Dollar Tree would acquire Family Dollar in a cash and stock transaction. Under the terms of the agreement, Family Dollar shareholders would receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares for each common share of Family Dollar owned, subject to a collar. At closing, Family Dollar shareholders would own no less than 12.7% and no more than 15.1% of the outstanding common stock of Dollar Tree.
Morgan Stanley & Co. LLC is serving as exclusive financial advisor to Family Dollar and Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel.