Facebook Pinterest Search Icon SourcingJournal_horiz Tumbler Twitter Shape photo-camera graph-trend Shape latest-news icon / user

Dollar Tree to Sell 330 Family Dollar Stores to Sycamore Partners

Join Theory, Google, H&M, McKinsey, Foot Locker, Lafayette 148, LL Bean, the Retail Prophet and more at Sourcing Journal’s Virtual Sourcing Summit, R/Evolution: Overhauling Fashion’s Outmoded Supply Chain, Oct 14 & 15.

Dollar Tree announced plans on Friday to divest 330 Family Dollar stores to New York-based private equity firm Sycamore Partners in a bid to address competition concerns raised by the Federal Trade Commission (FTC) pending the merger of the two discount retailers.

The sale to Sycamore, which will operate the stores under the Dollar Express banner, is contingent on the completion of the Family Dollar acquisition. Terms of the deal were not disclosed but the locations represent about $45.5 million of 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,” Peter Morrow, a managing director at Sycamore Partners, said in a statement.

Dollar Tree currently operates 5,454 stores in the U.S. and five in Canada for a total of 47.2 million square feet of selling space. The Family Dollar merger, expected to be finalized in July, will create the largest dollar chain in the country, with some 13,000 stores operating under both brands nationwide and raking in about $20 billion in revenue.

Dollar Tree first made moves to purchase Family Dollar in a cash and stock offer of $9.2 billion, including debt, last July. A $9.1 billion all-cash offer from rival Dollar General was spurned by shareholders in January amid concerns that combining the two chains would arouse anti-trust issues.

Related Articles

More from our brands

Access exclusive content Become a Member Today!