Dollar Tree’s Acquisition of Family Dollar Stores

Dollar Tree was started in 1986 by Macon Brock, Doug Perry, and Ray Compton. Five stores were opened initially. The stores were first called “Only $1.00.” However, in 1993, “Only $1.00” became Dollar Tree. In March 1995, the company came up with an Initial Public Offerings (IPO) at US$ 15 per share, raising its market capitalization to US$ 225 million. Since 1995, Dollar Tree added a number of stores through several mergers and acquisitions. Its acquisition strategy was to target the company that had a similar single-price point concept (Refer to Exhibit I for Acquisitions by Dollar Tree Inc)...