Dollar Tree Inc. is slated to sell 330 Family Dollar Stores to private equity firm Sycamore Partners.
The transaction is contingent on completion of Dollar Tree’s merger with Family Dollar Inc. The divestiture addresses the concerns of the Federal Trade Commission regarding the number of stores that will be operated by the combined entity. The FTC still has to give its approval of the merger between the two dollar stores.
Dollar Tree said it intends to close the merger in early July after receiving FTC clearance.
Sycamore will operate the 330 stores under the Dollar Express banner. Peter Morrow, a managing director at Sycamore, said, “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.”
It wasn’t disclosed how much Sycamore is paying for the stores.