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KKR's $7.3B Buy of Dollar General Closes

GOODLETSVILLE, TN-The buyout of the locally based 8,260-unit chain represents a continuation of private equity acquisitions that take retailers private.

By Marita Thomas | Updated on July 06, 2007

GOODLETSVILLE, TN-The acquisition of locally based Dollar General Corp. by a private investment group led by affiliates of New York City’s Kohlberg Kravis Roberts & Co. LP has reached completion. Among the other equity co-investors in the $7.3-billion deal are GS Capital Partners, an affiliate of Goldman Sachs, and Citi Private Equity.

Under the terms of the agreement struck on March 11, Dollar General shareholders will receive $22 per share in cash. Dollar General’s common stock will cease trading on the NYSE prior to the opening of trading on Monday, July 9. By mid-day on Friday, July 6, shares were trading at $21.99 a share, up two cents from the previous 52-week high hit the day before.

At the time of the March announcement, the purchase price represented a significant premium for DG shares, which were trading in the mid-teens. The 52-week low of $12.10 a share occurred on Aug. 30, 2006. The purchase price includes the assumption of about $380 million in debt.

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