Family Dollar board opts not to sell business, stays on "strategic plan" to ramp sales
HTT Staff -- Home Textiles Today, 3/3/2011 11:23:46 AM
Matthews, N.C. - Family Dollar Stores Inc.'s board of directors has decided not to sell the business to Trian Group, opting instead to focus on improving its performance by pursuing its earlier-implemented strategic plan.
The board voted unanimously that Trian Group's unsolicited proposal "substantially undervalues the company, and that pursuit of a sale of the company is not in the best interest of shareholders."
Chairman and ceo Howard Levine noted that in September 2010, Family Dollar - which operates more than 6,800 units in 44 states -- shared with its investors its strategic plan to accelerate revenue growth, expand operating margins and optimize its capital structure.
"The results from this fiscal year are a positive reflection of this plan," he said. "We have accelerated new store openings, launched an ambitious, multi-year store renovation program, and invested to improve our operational capabilities. In addition, our board increased the quarterly dividend by 16% to $0.18 per share and approved a $750 million share repurchase program. As of March 2, 2011, the company had repurchased $400 million of common stock."
Levine added that Family Dollar is "executing effectively on its business plan and has a proven record of delivering superior results for shareholders. We continue to believe that our efforts to serve our customers better while improving our operational capabilities and returning excess capital to shareholders will deliver strong financial returns in fiscal 2011 and beyond."
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