MADISON, WI (WTAQ) - Dollar Tree will gain dozens of stores in Wisconsin, after it buys the rival Family Dollar chain.
The $8.5 billion acquisition was announced Monday.
It will give Dollar Tree over 13,000 locations in the U.S. -- more than the current leading discounter Dollar General.
Dollar stores have had more competition, after Kroger and Walmart began offering smaller locations to sell to lower-income customers. As a result, media reports said Family Dollar has been closing some of its locations, and cutting prices.
As of last fall, Dollar Tree had 95 stores in Wisconsin. Family Dollar had 141.
Dollar Tree said it would keep both brands, and did not say whether any stores would be closed.
Dollar Tree sells all its items for a dollar, while Family Dollar charges a broader range so it can sell brand name merchandise like Tide detergent.
Dollar Tree CEO Bob Sasser said the two chains offer complimentary merchandise. Both boards have approved the acquisition, and Family Dollar stockholders are being asked to do the same.
The deal is expected to be finalized early next year.
(Story courtesy of Wheeler News Service)