Sector Spotlight: Discount Retailers Become Acquisition Targets
Family Dollar Stores (NYSE:FDO) has received a go-private buyout offer from Nelson Peltz’ hedge fund Trian Capital for $55-60 per share. Will this kick off a wave of M&A in the discount retailer space?
Considering the offer is a 25% premium to Family Dollar’s closing price, other CEO’s and shareholders may see a merger or acquisition as a way to perpetuate an awesome run since the economic collapse — especially since Wall Street’s new mantra is consumers are ready to start trading up to Target (NYSE:TGT) and Walmart (NYSE:WMT) from bargain basement goods.
Here are the other discount retailers to add to your watchlist:
- Dollar General (NYSE:DG)
- Dollar Tree (NASDAQ:DLTR)
- 99 Cents (NYSE:NDN)
- Big Lots (NYSE:BIG)
- The TJX Companies, Inc. (NYSE:TJX)
- Ross Stores, Inc. (NASDAQ:ROST)
- Fred’s (NASDAQ:FRED)
- Stein Mart, Inc. (NASDAQ:SMRT)
- Stage Stores, Inc. (NYSE:SSI)
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