Dollar Tree has completed its acquisition of Family Dollar Stores, in a deal that will extend its reach to low-income customers, and strengthen and diversify its footprint.

Under the terms of the merger agreement first announced and approved by each company's board in July last year, Family Dollar shareholders will receive $59.60 in cash and 0.2484 of a share of Dollar Tree common stock for each share of Family Dollar common stock.

"We are pleased to announce we have completed our acquisition of Family Dollar and we formally welcome the Family Dollar team to the Dollar Tree organisation," said CEO Bob Sasser. "This is a transformational opportunity for our business to offer broader, more compelling merchandise assortments, with greater values, to a wider array of customers.

"We plan to leverage best practices across both organisations to deliver significant cost synergies. Combined, our growth potential is enhanced with improved opportunities to increase store productivity and to open more stores across multiple banners."

Additionally, Gary Philbin has been named COO of Family Dollar, and Howard Levine, CEO of Family Dollar, has been appointed to Dollar Tree's board of directors, both effective immediately.