Family Dollar rejects takeover bid, boosts private-label efforts

Bid valued at nearly $7 billion

MATTHEWS, N.C. — Family Dollar on Thursday said "no thanks" to an active investor's takeover bid.

The discount retailer said the buyout offer of $55 to $60 per share, made by Nelson Peltz's Trian Fund, "undervalued" the company. Family Dollar did, however, strike a deal with Marketing Management to help boost its private-label efforts.

Through this strategic alliance, MMI will help Family Dollar with such private-label issues as sourcing, product development, category analytics, assortment strategy, quality assurance and customer insights.

“Enhancing our private-brand assortment to drive margin improvement and customer loyalty is a key strategic initiative for Family Dollar,” said Don Hamblen, Family Dollar’s SVP customer marketing. “A compelling assortment of private-brand merchandise gives our value-conscious customer more choices at lower prices without lower standards. Our alignment with MMI will help ensure our assortment is focused on quality and value across all our consumables departments.”

Login or Register to post a comment.