Dollar General IPO to Fund Store Growth, Reduce Debt

Dollar General is seeking to raise up to $750 million in an initial public offering that would reduce debt and help fund growth including the potential to more than more double its 8,500 stores.

GOODLETTSVILLE, Tenn. — Dollar General is seeking to raise up to $750 million in an initial public offering that would reduce debt and help fund growth including the potential to more than more double its 8,500 stores.

In a prospectus filed Friday with the U.S. Securities and Exchange Commission, the discounter said its market analysis showed more than 12,000 opportunities for new stores located in the 35 states in which Dollar general already does business, and said it could continue to add new stores at a rate of about 500 a year. The company said it could improve sales and profitability through improved store productivity, merchandising, sourcing and store renovations.

Dollar General was acquired by the private equity firm Kohlberg Kravis Roberts in 2007 and under new leadership improved sales and profitability. Its current owners would control more than 50% of the company under the IPO.

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