Private Equity Firm Makes Bid for Dollar General

Private equity firm Kohlberg Kravis Roberts has made a 7.3-billion dollar bid to take Goodletsville-based Dollar General private.

Company officials announced (today/yesterday) that they’ve agreed to terms of the deal and recommended that shareholders approve the buyout. Shareholders would receive 22-dollars in cash per share, which is a 31-percent premium over Dollar General’s closing price on Friday. Analysts don’t expect any competing bids.

Dollar General has plans to close 400 underperforming stores this year and slow growth of new stores in a massive restructuring plan. Officials from the bidder KKR say they have plans to stay on that course.

Dollar General spokeswoman Tawn Earnest says the discount retailer remains committed to Middle Tennessee.

“Our company has very deep, local roots. Just on the other side of the Kentucky border, our company was founded 68 years ago. It has a very proud legacy and we remain committed to continuing that legacy of serving others.”

Dollar General operates more than 82-hundred stores across the country.

No shareholder vote has been set, but the deal is expected to close in the third quarter of this year. Dollar General shares closed up 25-percent (today/yesterday) on news of the buyout.