Family Dollar Stores, Inc. acquired by Dollar Tree, Inc.

Basis

• USD 9.2bn enterprise value is treated as publicly disclosed or derived directly from public source data.
• Valuation covers 100% of the target; the amount invested or paid for a stake is separate.
• Implied EV / revenue is 0.88x, calculated from USD 9.2bn value and USD 10bn revenue.
• Revenue and multiple inputs are not fully disclosed in public transaction materials reviewed; treat the multiple as an estimate.
• The announced $74.50 per-share consideration comprises $59.60 cash and Dollar Tree stock valued at $14.90 per share, subject to an exchange-ratio collar. Dollar Tree reported 11.3x enterprise value to standalone adjusted EBITDA for the last twelve months ended May 31, 2014; it also reported 8.2x including estimated run-rate synergies, which is not the canonical standalone multiple. Family Dollar FY2014 net sales were $10,489.3 million for the year ended August 30, 2014; approximately 0.88x EV/revenue is derived from the announced approximate $9.2 billion EV and those actual sales. Family Dollar’s $838 million 2014E EBITDA is a forecast, not the reported LTM multiple denominator. The issuer expected closing by early 2015; no completed closing date is established here. FY2014E forecast EBITDA USD838m is not identified as adjusted; the reported11.3x multiple separately uses adjusted LTM EBITDA, not that forecast denominator. Revenue multiple derived using announced approximate EV and target FY2014 net sales; EBITDA multiple is issuer-reported, not recalculated. Family Dollar FY2014 actual net sales and 2014E EBITDA are separate target-scope metrics. The 11.3x reported multiple uses LTM adjusted EBITDA through May 31, 2014; the 8.2x synergy-adjusted figure is note-only.