Nw York, NY, United States (4E) – Dollar General made a $78.50 a share, or around $9.7bn, bid for rival Family Dollar Stores, according to the company’s statement released Monday. The latest offer topped Dollar Tree’s $8.5bn bid last month.
Under the offer, shareholders will be paid $59.60 in cash and the equivalent of $14.90 in Dollar Tree shares for every Family Dollar stock they own. The firms valued the deal at $74.50 a share.
In recent years, Dollar General and Dollar Tree have increased their number of stores by around 6 percent annually. However, Family Dollar recently said it will close almost 400 stores in the current fiscal year.
Dollar General, which now operates 11,300 stores across 40 states, reported annual revenue of $17.5bn, according to the retailer’s filings. The deal with Family Store, which generates $10.39bn in sales and has over 8,200 stores in 46 states, would result to combined sales of around $28bn for Dollar General.