Dollar General Responds to Comments from Dollar Tree
Fri, 05 Dec 2014
Actively Engaged in Ongoing FTC Regulatory Review Process
Remains Committed to Acquisition of Family Dollar
GOODLETTSVILLE, Tenn.--(BUSINESS WIRE)--
Dollar General Corporation (NYSE: DG) today issued the following
statement in response to comments made by Dollar Tree, Inc. (Nasdaq:
DLTR) ("Dollar Tree") regarding its view of potential store divestitures
that may be required by the Federal Trade Commission ("FTC") in either a
Dollar Tree/Family Dollar Stores, Inc. (NYSE: FDO) ("Family Dollar") or
a Dollar General/Family Dollar combination.
Dollar General’s documents and data tell a very different story from
that contained in the press release issued today by Dollar Tree. As
Dollar General previously has stated, Walmart, not Family Dollar, is the
primary driver regarding Dollar General’s strategic pricing decisions,
and more than 90% of Dollar General’s SKUs are nationally priced (i.e.,
not subject to zone pricing). Dollar General is confident that its
approach to strategic and pricing decisions is both correct and superior
to that of Family Dollar and Dollar General has no intention of adopting
a flawed strategy -- either now or after an acquisition of Family Dollar
-- that it believes would impair its ability to compete with Walmart and
lead to inferior financial performance.
Dollar General is actively engaged in discussions with the Federal Trade
Commission (“FTC”) regarding the extent of potential divestitures that
would be required in connection with an acquisition of Family Dollar and
has been making good progress. Over the past few weeks, Dollar General
has provided the FTC with tens of thousands of documents supporting the
above facts and its broad view of competition. There is no reason to
believe that the FTC would take into account only Family Dollar’s
documents and data or afford them greater significance than Dollar
General's own evidence.
As stated in Dollar General's press release of December 4, 2014, Dollar
General will continue to work with the FTC and expects to provide an
update in sufficient time to allow Family Dollar shareholders to review
such information prior to the Family Dollar shareholders’ meeting now
scheduled for December 23, 2014.
Forward-Looking Statements
Dollar General includes “forward-looking statements” within the meaning
of the federal securities laws throughout this release. A reader can
identify forward-looking statements because they are not limited to
historical fact or they use words such as “scheduled,” “may,” “will,”
“could,” “should,” “would,” “expect,” “believe,” “anticipate,”
“project,” “plan,” “estimate,” “forecast,” “goal,” “objective,”
“committed,” “intend,” “continue,” or “will likely result,” and similar
expressions that concern Dollar General’s strategy, plans, intentions or
beliefs about future occurrences or results.
Forward-looking statements are subject to risks, uncertainties and other
factors that may change at any time and may cause actual results to
differ materially from those that Dollar General expected. Many of these
statements are derived from Dollar General’s operating budgets and
forecasts, which are based on many detailed assumptions that Dollar
General believes are reasonable, or are based on various assumptions
about certain plans, activities or events which we expect will or may
occur in the future. However, it is very difficult to predict the effect
of known factors, and Dollar General cannot anticipate all factors that
could affect actual results that may be important to an investor. All
forward-looking information should be evaluated in the context of these
risks, uncertainties and other factors, including those factors
disclosed under “Risk Factors” in Dollar General’s most recent Annual
Report on Form 10-K and any subsequent quarterly filings on Form 10-Q
filed with the Securities and Exchange Commission.
All forward-looking statements are qualified in their entirety by the
cautionary statements that Dollar General makes from time to time in its
SEC filings and public communications. Dollar General cannot assure the
reader that it will realize the results or developments Dollar General
anticipates, or, even if substantially realized, that they will result
in the consequences or affect Dollar General or its operations in the
way Dollar General expects. Forward-looking statements speak only as of
the date made. Dollar General undertakes no obligation to update or
revise any forward-looking statements to reflect events or circumstances
arising after the date on which they were made, except as otherwise
required by law. As a result of these risks and uncertainties, readers
are cautioned not to place undue reliance on any forward-looking
statements included herein or that may be made elsewhere from time to
time by, or on behalf of, Dollar General.
Important Additional Information
Dollar General has filed a definitive proxy statement and relevant
documents in connection with the special meeting of the shareholders of
Family Dollar at which the Family Dollar shareholders will consider
certain proposals regarding the potential acquisition of Family Dollar
by Dollar Tree, Inc. (the “Special Meeting Proposals”). Dollar General
and its directors and executive officers and other members of its
management and employees may be deemed to be participants in the
solicitation of proxies from Family Dollar’s shareholders in connection
with the Special Meeting Proposals. SHAREHOLDERS OF FAMILY DOLLAR ARE
URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors and
security holders may obtain a free copy of the proxy statement and other
documents filed by Dollar General at the SEC’s web site at
http://www.sec.gov or by contacting the information agent for the proxy
solicitation, Innisfree M&A Incorporated, at (877) 750-5837 (toll free
for shareholders) or (212) 750-5833 (collect for banks and brokers).
About Dollar General Corporation
Dollar General Corporation 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.
In addition to high quality private brands, Dollar General sells
products from America's most-trusted manufacturers such as Clorox,
Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle,
Kimberly-Clark, Kellogg's, General Mills, and PepsiCo. For more
information on Dollar General, please visit www.dollargeneral.com.
Investors: Dollar General Corporation: Mary
Winn Pilkington, 615-855-5536 or Emma Jo Kauffman, 615-855-5525 or Media: Brunswick
Group: Steve Lipin or Shahed Larson, 212-333-3810 or Dollar
General Corporation: Media Hotline, 877-944-DGPR (3477) or Dan
MacDonald, 615-855-5209 or Crystal Ghassemi, 615-855-5210
