Stockholders of Family Dollar Stores will receive $59.60 in cash and the equivalent of $14.90 in shares of Dollar Tree for each share they own. The companies put the value of the transaction at $74.50 per share, which is an approximately 23 percent premium to Family Dollar’s Friday closing price of $60.66.
The companies put the enterprise value of the deal, including debt and other costs, at more than $9 billion.
Family Dollar stockholders will own somewhere between 12.7 percent and 15.1 percent of Dollar Tree’s outstanding common shares at closing. Shares spiked more than 24 percent and were headed for an all-time high before the opening bell Monday.
Shares of Dollar Tree neared an all-time high.