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GOODLETTSVILLE, Tenn. — Dollar Tree Inc. said it reached an agreement to sell 330 stores to a private equity firm as part of its proposed takeover of Family Dollar Stores Inc.
Dollar Tree Inc. said it reached an agreement to sell 330 stores to a private equity firm as part of its proposed takeover of Family Dollar Stores Inc.
Terms and locations of the stores were not disclosed, though it is expected that all of the divested stores will be Family Dollar locations.
The sale to New York-based Sycamore Partners Management LLC is contingent on completion of the Family Dollar deal, which Dollar Tree announced last July and was approved by Family Dollar shareholders in January.
The Federal Trade Commission is still reviewing the buyout. Dollar Tree officials said they expect that they deal will close in July. To win regulatory approval, Dollar Tree is required to sell 330 stores.
Previously, Dollar Tree executives indicated that their discussions with antitrust regulators at the FTC had led them to believe that they would have to divest 340 stores. They also said that the stores they identified for sale generate about $45.5 million in annual operating income for Family Dollar.
Sycamore Partners said it would operate the divested 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," said Bob Sasser, Dollar Tree’s chief executive officer.
Sycamore has investments in apparel and footwear retailers including Aeropostale, Talbots, Jones New York, Nine West and Hot Topic.
