Dollar Tree has completed the divestiture of 330 stores to Dollar Express LLC, a division of the private equity firm Sycamore Partners.
The divestiture satisfied a condition as required by the Federal Trade Commission in connection with Dollar Tree’s recently completed acquisition of Family Dollar Stores, Inc. The stores will operate under the Dollar Express banner.
New York-based Sycamore specializes in consumer and retail investments including stakes in apparel retailers Hot Topic, Aeropostale, Coldwater Creek and Jones New York. Terms of the deal were not disclosed.
“We are pleased to have completed this acquisition, which adds to our growing portfolio of leading retailers and consumer brands,” 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.”
According to postings on social media, Dollar Express stores will operate using Family Dollar’s field leadership but put its own team in place over time, “much of which will be drawn from the ranks of our current store managers,” the company said. According to an online job posting, "We're a start-up in the sense on that the entire corporate support function and all of the associated infrastructure needs to be developed, but we begin our journey with 330 store locations coast-to-coast in 36 states."
All of the acquired stores currently operate under the Family Dollar banner. They have an annual sales run rate of around $500 million and represent $45.5 million in operating income, the companies said.
Dollar Tree is headquartered in Chesapeake, Va. Dollar Express headquarters will be in Charlotte, N.C.
Mike Kvitko is president and chief merchandising officer at Dollar Express, according to social media postings. Kvitko is a former SVP of merchandising at Family Dollar and more recently served as chief merchant for 99 Cents Only Stores.
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