Dollar Tree May Divest More Stores To Buy Family Dollar

(RTTNews) - Dollar Tree Inc. (DLTR) provided update on the Federal Trade Commission's or the "FTC" review process of the Company's pending acquisition of Family Dollar Stores, Inc. (FDO).

Dollar Tree previously disclosed that it believes that the FTC will require the divestiture of no more than roughly 300 stores, and the Company continues to believe this to be true. However, the Company recently learned that the FTC is currently reviewing more than 500 stores, and the FTC may identify additional stores for review in the future.

Dollar Tree disclosed in a regulatory filing that the actual number of divestitures may therefore be above or below 300, as the number of divestitures that the FTC will require remains subject to uncertainties. Even if all the stores that the Company understands to be currently under review were required to be divested, the Company believes that the divested stores would represent no more than between $75 million and $82 million in Pro Forma Adjusted EBITDA.

If, as the Company believes should be the case, significantly fewer stores are required to be divested, then the Pro Forma Adjusted EBITDA represented by the divested stores will be significantly lower. Given the number of stores that the FTC continues to analyze, the Company now hopes to reach agreement with the FTC on the stores to be divested by the end of February and will work to close the Acquisition by April 27, 2015.