MATTHEWS, N.C.–Trian Group has offered to acquire Family Dollar in a deal that could cost the investor fund between $7 billion and $7.6 billion, according to a filing with the U.S. Securities and Exchange Commission.
Trian—which is led by Nelson Peltz, Peter May and Edward Garden—currently holds about eight percent of the retailer’s outstanding shares, and said in the filing that it believes it has the biggest holding of any of the shareholders. The fund also said it has offered Howard Levine, Family Dollar’s chairman and chief executive officer, the opportunity to participate in the acquisition.
Trian first acquired a stake in Family Dollar last July. In a filing with the SEC at that time, the company said it met with Levine and urged him to improve Family Dollar’s performance by boosting sales per square foot and optimizing the number of new-store openings, among other initiatives. In its report on its fiscal first quarter, which ended on Nov. 27, Family Dollar said it had increased net sales by 9.5 percent and same-store sales by 6.9 percent. It currently has more than 6,800 stores nationwide.
In a statement acknowledging the Trian offer, Family Dollar said its board will review the proposal with its financial and legal advisers. It did not give a timetable for a final decision.