Dollar Tree Inc. and Family Dollar Stores Inc. have agreed to sell 330 Family Dollar stores to private equity firm Sycamore Partners to settle Federal Trade Commission charges that the acquisition of Family Dollar would be anticompetitive.
The FTC approved the consent order by a 4-1 vote, with Joshua Wright the only commissioner voting no.
The details, including the sale to Sycamore, were ostensibly identical to those reported in late May.
“Dollar stores offer convenience and value by providing a broad assortment of general merchandise at discounted prices in stores close to where consumers live or work,” said Debbie Feinstein, director of the FTC’s bureau of competition. “This settlement will ensure that consumers will continue to benefit from competition among their local dollar stores.”
Sycamore plans to operate the stores under the Dollar Express banner, the private equity firm said in May. Peter Morrow, a director at Sycamore, estimated the annual run-rate for sales at approximately $500 million.
The consent agreement package will be subject to public comment for 30 days concluding on Aug. 3, after which the commission will decide whether to make the agreement final. Divestiture would be required within 150 days of the completion of the acquisition.
As of May 2, Dollar Tree operated 5,454 stores. Family Dollar’s store count as of May 30 was 8,261.