Dollar Tree to sell 330 Family Dollar Stores to Sycamore Partners

CHESAPEAKE, Va. -- Dollar Tree on Friday announced it had reached an agreement to sell private equity firm Sycamore Partners a divestiture package of 330 Family Dollar Stores locations, with the deal contingent on the completion of Dollar Tree’s pending acquisition of Family Dollar. Sycamore Partners intends to operate the 330 stores, which represent approximately $45.5 million of operating income for Family Dollar, under the Dollar Express banner.



"We look forward to drawing on our extensive experience with similar corporate carve-outs in acquiring and operating this attractive portfolio of 330 stores, which have an annual run-rate of approximately $500 million in sales," said Peter Morrow, a managing director at Sycamore Partners. “We have a proven track record of retail success and an experienced leadership team."



Dollar Tree said the divestiture enables it to address Federal Trade Commission concerns regarding its acquisition of Family Dollar. The company said it continues to make progress with the FTC, and intends to close the merger with Family Dollar in early July 2015 after securing FTC clearance.