Dollar Tree to sell 330 Family Dollar stores
The 330 stores represent approximately $45.5 million of operating income for Family Dollar. Sycamore Partners intends to operate the 330 stores under the Dollar Express banner.
"The divestiture presents Sycamore Partners with a unique opportunity to continue their track record of meaningful growth and successful retail investments," stated Bob Sasser, Dollar Tree's chief executive officer.
"We look forward to drawing on our extensive experience with similar corporate carve-outs in acquiring and operating this attractive portfolio of 330 stores, which have an annual run-rate of approximately $500 million in sales," said Peter Morrow, a managing director at Sycamore Partners.
The divestiture enables Dollar Tree to address Federal Trade Commission (FTC) concerns. Both the divestiture and the pending acquisition of Family Dollar remain subject to review by the FTC and satisfaction of other customary conditions.
Dollar Tree continues to make progress with the FTC and intends to close the merger with Family Dollar in early July 2015 after securing FTC clearance. ■