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CHESAPEAKE, Va. — Dollar Tree Inc. has sold 330 Family Dollar stores. The divestiture was required by the Federal Trade Commission in connection with Dollar Tree’s recently completed acquisition of Family Dollar Stores Inc.
Dollar Tree Inc. has sold 330 Family Dollar stores. The divestiture was required by the Federal Trade Commission in connection with Dollar Tree’s recently completed acquisition of Family Dollar Stores Inc.
The stores were sold to Dollar Express LLC, a company created and owned by the private equity firm Sycamore Partners. The stores will operate under the Dollar Express banner.
"We are pleased to have completed this acquisition, which adds to our growing portfolio of leading retailers and consumer brands," said Sycamore Partners managing director Peter Morrow. "We look forward to operating these 330 stores as Dollar Express, a brand new, nationwide discount retailer that is well positioned as an innovator in the market. We believe our significant experience with carve-out transactions will be beneficial in supporting the Dollar Express team to serve our loyal customers and create value."
Sycamore Partners says its strategy is to partner with management teams to improve the operating profitability and strategic value of their businesses. In addition to Dollar Express, the firm’s investment portfolio includes such retailers as Aeropostale, Coldwater Creek, Hot Topic and Talbots.
Dollar Tree completed its acquisition of more than 8,200 Family Dollar stores on July 6, and it is currently converting hundreds of those stores to the Dollar Tree single-price-point format. Last month the company announced that it was rebranding its 222 Deals stores: 217 will become Dollar Tree outlets, and five will become Family Dollar stores.
