AG Announces Terms of Settlement Allowing Dollar Tree to Aquire Family Dollar
21 Family Dollar Stores in Massachusetts to be Sold to Sycamore Partners and Become Dollar Expresses
BOSTON - Massachusetts and 16 other states have reached a settlement with Dollar Tree, Inc., following their review of the company’s proposed acquisition of Family Dollar Stores, Inc., Attorney General Maura Healey announced today.
The proposed merger combines two large national chains of deep discount stores. In a settlement, filed in conjunction with a lawsuit today in the federal district court for the District of Columbia, Dollar Tree will divest more than 300 Family Dollar stores nation-wide to a new competitor in order to complete the acquisition. All of the affected stores, 21 of which are located in Massachusetts, will be sold and re-branded as Dollar Express stores, a new chain that will be launched by Sycamore Partners.
“Dollar Tree and Family Dollar stores are located across Massachusetts in both small towns and in our larger cities and suburbs,” AG Healey said. “We wanted to ensure that in areas where these stores were near each other, competition to offer the best prices and merchandise would be maintained.”
The AG’s Office joined 16 other states and the Federal Trade Commission to complete a national review of the transaction. The states filed their joint lawsuit and settlement in the federal district court of the District of Columbia. Sycamore Partners is expected to acquire the stores over the coming months.
Dollar Tree is headquartered in Chesapeake, VA and operates more than 4,200 stores, including more than 60 stores in Massachusetts. Family Dollar is headquartered in Matthews, NC and operates more than 8,000 stores nationwide, including more than 90 stores in Massachusetts.
This matter was handled by Assistant Attorney General Michael MacKenzie and Division Chief William Matlack of Attorney General Healey’s Antitrust Division.