Dollar tree reaches agreement with New York equity firm to sell 330 Family Dollar stores

Mostly suburban Dollar Tree announced on Friday that it has agreed to sell 330 Family Dollar stores, a staple in rural and poor areas, to New York private equity firm Sycamore Partners that will operate the stores under the name Dollar Express, Rick Rothacker reports for the Charlotte Observer. The sale "is contingent on the completion of the Family Dollar acquisition. The deal terms and the locations to be sold weren’t disclosed."

Dollar Tree purchased Family Dollar for $8.5 billion, winning a takeover battle with rival Dollar General that began last year, Rothacker writes. "The sale of the 330 stores is designed to address competition concerns raised by the Federal Trade Commission, which is still reviewing the deal. Dollar Tree said it 'continues to make progress' with the FTC and intends to close the merger with Family Dollar in early July after receiving the regulator’s approval."

"The combined Dollar Tree will have about $20 billion in revenue and more than 13,000 stores, making it the largest U.S. dollar store chain by store count. Sycamore Partners, which has $3.5 billion in capital under management, specializes in consumer and retail investments," Rothacker writes. "The firm’s portfolio includes companies such as Aeropostale, Coldwater Creek, Hot Topic, Nine West Holdings and Talbots." (Read more)