SANATOGA PA – North Carolina-based Family Dollar Stores Inc., which last week sent its developers to meet with Lower Pottsgrove commissioners about opening a Sanatoga retail store at 2238 E. High St., said Monday (July 28, 2014) it would be bought by competitor Dollar Tree Inc. for $8.5 billion, USA Today reported.
The cash-and-stock deal was unanimously approved by the boards of directors of both companies. “This acquisition will extend our reach to lower-income customers and strengthen and diversify our store footprint,” Dollar Tree CEO Bob Sasser said of the Family Dollar purchase.
Family Dollar would continue to operate its stores under that name after the Dollar Tree purchase, USA Today reported.
Ironically, Family Dollar representatives who appeared Thursday (July 24, 2014) before the Board of Commissioners made mildly derisive comments about Dollar Tree during the meeting. Dollar Tree operates a store on Ridge Pike in Limerick, and developers told commissioners their proposed project would be “nothing like that.”
It is unknown how, if at all, the impending merger might affect Family Dollar’s Sanatoga plans. The project faces an uphill fight from the start, developers agree, because it would require a variety of zoning approvals. Local attorney Charles Garner, who accompanied them, said developers were unlikely to seek zoning relief without commissioners’ support.
The Sanatoga project would be part of what was described to commissioners as a company store expansion begun last year. Monday’s USA Today article reported that disappointing results for the 2014 second quarter caused the company to reverse its thinking and decide to close 370 stores.
- Read the USA Today article, titled “Dollar Tree buying Family Dollar for $8.5 billion,” here.
- “Dollar Tree to buy Family Dollar for $8.5 billion” (Fox Business)
- “Dollar Chains Agree to $8.5 Billion Merger After Icahn Push” (Bloomberg BusinessWeek)
- “Why We Spend So Many of Our Dollars at Dollar Stores” (Time)