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Family Dollar shareholders approve merger with Dollar Tree

By Jim Bradley
By Jim Bradley

Story highlights:

  • Family Dollar shareholders vote to approve Dollar Tree merger
  • Transaction creates leading discount retailer with more than 13,000 stores and annual sales exceeding $18 billion
  • Completion of transaction expected as early as March 2015

CHARLOTTE, N.C. -- It took Family Dollar shareholders just 20 minutes Thursday morning to approve a merger with Dollar Tree in Charlotte.

The deal had been the source of a lot of contention in the past several weeks, especially because rival Dollar General had been attempting a hostile takeover.

After several weeks of waiting, shareholders voted on the deal around 9 a.m. at the Mint Museum on Randolph Road.

Channel 9 broke the news on Twitter as soon as the decision was made.

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Family Dollar CEO Howard Levine said he was extremely pleased with the merger with Dollar Tree and that the deal will most likely go through in March of this year.

Not all shareholders were as happy as Levine though. Gary Burgess told Channel 9 after the vote took place that he was "disappointed in Howard Levine."

WATCH: Shareholder says he's "disappointed in Howard Levine"

Shareholders knew their vote would have a major impact on Charlotte's local economy. About 1,500 employees work at the Matthews-based company and after the vote, Levine said he expects the Matthews headquarters to remain for the foreseeable future and employees should breathe a sigh of relief.

Two companies -- Dollar Tree and Dollar General -- were locked in a bidding war for Family Dollar.

For the town of Matthews the stakes have been high.

Family Dollar’s headquarters and distribution center employ about 1,300 workers.

Mayor Jim Taylor admits he’s been anxious for a resolution in the merger drama.

"I wanted to get this behind us so it wouldn’t be a cloud over everything," Taylor said.  "It’s terrific news for the town of Matthews. We retain a good corporate citizen in the community. A lot of the jobs will remain in the area.”

"Today's vote of approval by Family Dollar shareholders represents a crucial step toward combining Dollar Tree, North America's leading fixed-price point discount retailer, with Family Dollar, a leading multi-price point retailer with a 50+ year history of serving low and middle income customers", stated Bob Sasser, Dollar Tree's Chief Executive Officer. "By adding Family Dollar to our portfolio of brands, Dollar Tree will soon operate more than 13,000 stores in 48 states and five Canadian provinces with annual sales exceeding $18 billion. This merger enhances our geographic footprint and diversifies our business model. We intend to operate and grow both banners. At Dollar Tree stores, everything is $1 while Family Dollar stores will continue to serve low to middle income customers with name brand consumables, home basics, variety and seasonal products at discount store prices. By utilizing the $1 fixed-price point in Dollar Tree and multi-price points at Family Dollar, we will deliver even greater value and choice to a broader range of consumers."

Sasser added, "We are eager to welcome Family Dollar associates to the Dollar Tree team. We appreciate the dedication and hard work of Family Dollar's associates throughout the integration planning process and we look forward to working together to further grow and improve the Family Dollar brand."

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One consideration for shareholders was how much each company was offering. At $8.5 billion, Dollar Tree's offer is about half a billion dollars less than Dollar General's offer.

Another consideration was time. Even though Dollar General had offered a higher bid, company officials said they needed more time to formulate their plan because of anti-trust concerns.

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