Family Dollar is a chain of American stores. With more than 8,000 locations in all countries except Alaska, Hawaii, Oregon and Washington, this is the second largest retailer of its kind in the United States. The Family Dollar is headquartered in Matthews, a suburb of Charlotte, North Carolina, where it employs 1,400 people.
In June 2014, investor activists and major shareholders Carl Icahn demanded that the Family Dollar soon be set up for sale.
On July 28, 2014, Dollar Tree announced that it would buy a Family Dollar of $ 8.5 billion. The sale provided a fortune to the company's largest shareholder, Carl Icahn, which acquired 9.4 percent of its shares in June 2014. On January 22, 2015, the Family Dollar shareholders approved the Dollar Tree offer.
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Histori
The Family Dollar was founded in 1959 by Leon Levine, a 21-year-old businessman. In November of that year, the company's first store opened, in Charlotte, North Carolina. In 1961, their first store in South Carolina opened, followed by stores in Georgia and Virginia, which opened in 1962 and 1965, respectively. During the 1960s, most store companies operated in the southern United States. In 1969, there were fifty stores in Charlotte alone.
The 1970s were the growth years for the chain stores. In 1970, Family Dollar shares became public for the first time, at $ 14.50 per share. In 1971, the 100th store was opened, followed by their 200th in 1974 and the 300th in 1978. Also in 1974, a distribution center opened in Matthews, North Carolina. In 1979, Family Dollar shares began trading on the New York Stock Exchange.
In 1981, the 400th storefront opened, followed by the 500th store in 1982 and the 700th in 1983. The 1980s expanded on a wider scale for the company, and, in 1989, 1,500 shops operate.
The 1990s saw the pace of expansion slowed compared with the 1980s, with 1,000 stores opened. The company opened a distribution center in West Memphis, Arkansas; Front Royal, Virginia and Duncan, Oklahoma. Since 2000, the growth rate has increased significantly, with the addition of around 3,500 new stores, and a new distribution center opened in Morehead, Kentucky; Maquoketa, Iowa; Odessa, Texas; Marianna, Florida; and Rome, New York.
In 2001, the Family Dollar merged with the stock market index of S & amp; P 500. In 2002, the company joined the Fortune 500 list of the largest public companies.
When Leon Levine retired in 2003, his son Howard R. Levine succeeded him as Chairman and CEO, maintaining this multibillion-dollar company in the family.
In March 2005, the Family Dollar restated the company's 2000 fiscal profit to fiscal 2004 per share down by 2 cents to 3 cents per year, to fix the lease accounting problem.
As of August 2011, there are 7,000 stores in 44 states. According to their Corporate Profile 2013, the Family Dollar opened 200 new stores, 300 more in 2011, 475 in 2012, and an additional 500 by 2013. On October 3, 2012, the Family Dollar says it will open 500 stores in 2013. The next day, the Family Dollar partnered with Healthways. Family Dollar operates 11 distribution centers - most recently opened in St. Petersburg. George, Utah, on October 16, 2013.
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Selling pressure
In March 2011, Family Dollar rejected a takeover offer by Nelson Peltz's Trian Fund Management reported between $ 55 and $ 60 per share.
On June 6, 2014, investor activist Carl Icahn revealed that his company, Icahn Enterprises, holds a 9.4% stake in the Family Dollar. On June 19, 2014, Icahn demanded in an open letter that the Family Dollar will soon be sold. Goldman Sachs and other analysts have identified a number of potential buyers.
On June 19, 2014, 22% of Family Dollar shares were controlled by activist investors.
Acquisitions
On July 28, 2014, Dollar Tree announced that it would earn a Family Dollar of $ 74.50 per share, an agreement that valued the Family Dollar of $ 8.5 billion, and the Dollar Tree would also assume $ 1 billion in debt that this is owed by Family Dollar, for a total of $ 9.5 billion. Dollar Tree CEO Bob Sasser said that Family Dollar CEO Howard R. Levine will remain with the company after the merger and will be appointed to the board of directors of the Dollar Tree. The Dollar General entered into an offer, shortly thereafter, surpassing the offer of Dollar Tree on August 18, 2014, $ 78.50 per share compared to Dollar Tree's offer of $ 74.50 per share. The company's value of the General Dollar bid is $ 9.7 billion compared to the Treasury Dollar of $ 9.2 billion, while quantum returns to shareholders vary as stock valuations and cash transactions are subject to fluctuations in competitive bidder stock prices. On August 20, 2014, the Dollar Family rejected the offer of the Common Dollar, saying it was not a price issue, but concerns over antitrust issues that had convinced the company and its advisors that the deal could not be concluded on the proposed requirements. A few days later, General Dollar CEO Rick Dreiling sent a letter to the Dollar Family board of directors claiming that Levine rejected the merger request to protect his work. Levine, in a statement, said the Family Dollar council has analyzed potential antitrust issues that could arise from making deals with the Common Dollar since the beginning of the year, and that is the reason why not accepting a Dollar General offer.
On January 22, 2015, Family Dollar shareholders approved Dollar Tree's offer.
Some stores are required to be sold as a condition of sale. Sycamore Partners acquired stores in 2014 under the name Dollar Express. The stores continue to operate under the name Family Dollar. In 2017, Dollar General acquires Dollar Express and converts stores.
References
External links
- Official website
Source of the article : Wikipedia
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