Dollar Tree, Inc. (NASDAQ:DLTR) has announced that it is expecting to sell roughly 330 family Dollar stores so that it can receive the consent to acquire Family Dollar for $85 billion.
The company will try to reach the 330 stores goal because it will put Dollar Tree in a better position to acquire the approval to buy out Family Dollar. So far, the company has not named any potential buyers of the 330 stores. The company did not even point out which particular stores will be involved. What is clear is that those stores take up more than $45 million in terms of operating income as reported by Dollar Tree.
Once the 330 stores are sold, the two companies will probably gain the consent to merge into a conglomerate. The resultant spinoff will be the biggest Dollar store firm in the country. It will command more than 13,000 stores excluding the ones that will be sold. Currently, Dollar Tree controls about 5,450 stores. Family Dollar, on the other hand, has more than 8000 stores. Their arch rival, Dollar General, has 12000 stores. The same company was unable to secure a successful bid to acquire Family Dollar Stores, Inc. (NYSE:FDO).
Dollar Tree hopes that the acquisition process will come to a completion towards the end of June. On Thursday, the company changed its annual revenue projections. The projections were placed below the expectations of Wall Street experts. Officials at the company claimed that the lower projections were influenced by the Strike that took place at the West Coast port. The strike caused merchandise delays leading to slow business for the firm.
Dollar Tree, Inc. (NASDAQ:DLTR) expects the share projections to and an average range of $3.32 per share to 3.47 per share. This is an improvement compared to the previous projection average ranging from of $3.30 per share to $3.50 per share.
In line with the share projections, the firm also expects to see changes in its revenue stream. The firm now expects a range of $9.24 billion and $9.42 billion compared to the previous projection range of $9.21 billion to $9.45 billion.