Dollar stores merge
As one national dollar store chain seeks to expand in the Berkshires, two others with county outlets have decided to merge.
Dollar Tree is purchasing Family Dollar for $8.5 million in cash and stock, the two companies announced on Monday.
Both chains operate stores in North Adams, Pittsfield and Bennington, Vt.
Dollar Tree will continue to operate under the existing Dollar Tree, Deals, and Dollar Tree Canada signs. It intends to keep Family Dollar as a separate brand.
The two companies combined will operate more than 13,000 stores in 48 states and Canada, and have more than $18 billion in revenue, according to The New York Times.
Dollar Tree stores sell product for $1 or less, while Family Dollar’s pricing is broader.
Under the terms of the deal, Dollar Tree will pay $74.50 for each share of Family Dollar stock. Family Dollar stockholders will own somewhere between 12.7 percent and 15.1 percent Family Dollar’s outstanding common shares at closing.
Shares in Family Dollar increased about 22 percent in premarket trading on Monday, while shares in Dollar Tree rose about 6.5 percent.
A third chain, Dollar General, has plans to open several stores in Berkshire County. It has already opened one store in Lanesborough.
The boards of both companies have unanimously approved the transaction, which is expected to close by early next year, according to The Associated Press.
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