Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Dollar Tree to sell 330 Family Dollar stores to Sycamore Partners, (Jun 2, 2015)
Organizations Mentioned:Dollar Tree Stores, Inc. | Dollar Tree, Inc. | Family Dollar Stores, Inc. | Sycamore Partners, LP | Sycamore partners
By Greg Hammond, J.D.
Dollar Tree, Inc. has agreed to sell Sycamore Partners a divestiture package of 330 Family Dollar stores upon Dollar Tree’s acquisition of Family Dollar Stores, Inc., in order to address the FTC’s concerns with the pending acquisition. Dollar Tree is the leading operator of discount variety stores in the United States, and Sycamore Partners is a private equity firm that specializes in consumer and retail investments.
Dollar Tree announced plans to acquire Family Dollar in July 2014. The combined entity would include over 13,000 stores in 48 states and five Canadian Provinces. Pursuant to its acquisition plans, Dollar Tree entered into discussions with the FTC concerning the extent of divestitures the Commission would seek in connection with the proposed merger. According to Dollar Tree’s Form 8-K filed with the U.S. Securities and Exchange Commission, the FTC identified 340 stores for divestiture.
The 330 Family Dollar stores that are to be divested to Sycamore Partners represent $45.5 million of operating income for Family Dollar. Sycamore Partners intends to operate the 330 stores under the Dollar Express banner, Dollar tree announced.
“The divestiture presents Sycamore Partners with a unique opportunity to continue their track records of meaningful growth and successful retail investments,” stated Dollar Tree’s Chief Executive Officer, Bob Sasser.
“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,” Managing Director of Sycamore Partners Peter Morrow said. “We have a proven track record of retail success and an experienced leadership team. We are eager to better serve the needs of customers in these markets by providing an improved shopping experience.”
Companies: Family Dollar Stores, Inc.; Dollar Tree, Inc.; Sycamore partners
News: AcquisitionsMergers Antitrust