A new dollar store brand is born
A private equity group better known for investing in established companies is creating a new dollar store brand after acquiring 330 Family Dollar stores from Dollar Tree.
Dollar Tree acquired Family Dollar earlier this year and to satisfy federal regulators, the company agreed to divest 330 Family Dollar stores. The acquiring company is a newly created portfolio company of the private equity firm Sycamore Partners called Dollar Express.
“We are pleased to have completed this acquisition, which adds to our growing portfolio of leading retailers and consumer brands,” said Peter Morrow, a managing director at Sycamore Partners. “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 specializes in consumer and retail investments with a $3.5 billion portfolio that includes brands such as Aeropostale, Coldwater Creek, Hot Topic, the Kasper Group, Nine West, Talbots, and Torrid.
As for Dollar Tree, it will hardly notice the divested store. The combination of Dollar Tree and Family Dollar created a retailer with nearly 14,000 locations nationwide.
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