Dollar General’s Proposal to Acquire Family Dollar for $9.7 Billion

Simpson Thatcher is representing Dollar General Corporation (NYSE: DG) in connection with its announced proposal to acquire Family Dollar Stores, Inc. (NYSE: FDO) for $78.50 per share in cash, in a transaction valued at $9.7 billion. The combination would solidify Dollar General’s position as the largest small-box discount retailer in the U.S. with nearly 20,000 stores in 46 states and sales of over $28 billion.

Dollar General has been delivering value to shoppers for 75 years. Dollar General helps shoppers “Save time. Save money. Every day!®” by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at low everyday prices in convenient neighborhood locations. With more than 11,500 stores in 40 states, Dollar General has more retail locations than any retailer in America. Family Dollar, a Fortune 500 Company, offers a mix of name brands and quality, private brand merchandise appeals to shoppers in more than 8,200 stores in rural and urban settings across 46 states.

The Simpson Thacher team includes Marni Lerner, Michael Holick and Michael Guo (M&A); James Cross, Christian Fischer, Sheri Nentin and Wenli Cai (Credit); Joseph Kaufman and Justin Hoffman (Capital Markets); Matt Reilly, Sara Razi and John Goheen (Antitrust); David Rubinsky, Jeannine McSweeney and Patricia Adams (Executive Compensation and Employee Benefits); and Nancy Mehlman (Tax).

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