CHESAPEAKE, Va. — As part of gaining regulatory approval for its acquisition of Family Dollar Stores Inc., Dollar Tree Inc. has agreed to sell 330 stores to private equity firm Sycamore Partners.
The stores being sold — all Family Dollar locations — are slated to be operated under the Dollar Express banner by New York-based Sycamore.
“The divestiture presents Sycamore Partners with a unique opportunity to continue their track record of meaningful growth and successful retail investments,” Dollar Tree chief executive officer Bob Sasser said in a statement.
Dollar Tree reported that the 330 stores account for about $45.5 million in operating income for Family Dollar.
“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,” commented Peter Morrow, a managing director at Sycamore.
Dollar Tree’s store divestiture and its pending acquisition of Family Dollar remain subject to review by the Federal Trade Commission and other customary closing conditions. Dollar Tree said it expects to finalize the merger with Family Dollar in early July 2015 after securing FTC clearance.
Overall, Dollar Tree currently operates 5,454 stores in 48 states and five Canadian provinces. The company will have approximately 13,000 stores upon completion of the merger with Family Dollar.