What company bought out Dollar General? The acquisition saga of Dollar General Corporation unfolds a tale of strategic maneuvering, financial prowess, and corporate evolution. From its humble beginnings in rural America to its status as a retail giant, Dollar General has undergone significant transformations, including mergers, private ownership, and tender offers. In this comprehensive exploration, we will delve into the intricacies of Dollar General’s journey, spotlighting pivotal moments such as its acquisition by investment groups, its $7.3 billion merger deal, and the consolidation of its ownership under Buck. Join us as we unravel the layers of Dollar General’s corporate evolution and the forces behind its transformative trajectory.
Information About Dollar General Corporation
Dollar General Corporation, a chain of variety stores based in Goodlettsville, Tennessee, boasts a vast presence with 19,643 stores spread across the continental United States and Mexico, as of January 8, 2024.
History and Founding:
Founded in 1939 by James Luther Turner and Cal Turner in Scottsville, Kentucky, Dollar General started as a family-owned business under the name J.L. Turner and Son. In 1955, it underwent a rebranding, becoming Dollar General Corporation. The company took a significant step in 1968 by going public on the New York Stock Exchange.
Corporate Success:
Dollar General has emerged as one of the most prosperous retail chains in rural America. With revenues reaching approximately $27 billion in 2019, the company’s success is evident across diverse product categories. From clothing and cleaning supplies to groceries and seasonal items, Dollar General offers a wide array of products.
Fortune 500 Recognition:
Notably, Dollar General’s achievements have been recognized on a global scale. The company earned a spot on the prestigious Fortune 500 list, securing the 112th position in 2020. This acknowledgment highlights Dollar General’s consistent growth and influence in the retail industry.
Acquirers of Dollar General
In 2007, Dollar General, a well-known discount retailer, experienced a significant transformation when it was bought by a group of investors. Among these investors were notable names like Kohlberg Kravis & Roberts & Co. L.P. (KKR), GS Capital Partners (an affiliate of Goldman Sachs), Citi Private Equity, and other co-investors. Together, they formed a team to purchase Dollar General, marking a major change in the company’s ownership.
The total value of this transaction amounted to around $7.3 billion, indicating a substantial investment in acquiring Dollar General. In simpler terms, the investors paid a large sum to become the new owners of the company. Shareholders of Dollar General agreed to the deal, with each shareholder receiving $22.00 in cash for every share they held in the company.
Following the acquisition, Dollar General’s common stock ceased trading on the New York Stock Exchange (NYSE), transitioning into a privately owned entity. This shift meant that the company was no longer subject to the scrutiny of public stockholders, allowing the new owners greater freedom in making decisions for the business.
In summary, a group of investors, led by KKR and Goldman Sachs, took control of Dollar General in 2007, turning it into a privately owned company. Their significant investment underscored their commitment to acquiring this popular discount retailer, enabling them to steer its direction without the oversight of public shareholders.
Completion of Dollar General’s $7.3 Billion Merger Deal
Dollar General Corporation, a renowned discount retailer, recently finalized a major merger deal. Here’s a simplified breakdown:
What Happened?
Dollar General joined forces with investment firms such as Kohlberg Kravis & Roberts (KKR), Goldman Sachs, and Citi Private Equity. Together, they collectively injected approximately $7.3 billion into the merger agreement.
Why?
Mergers are typically aimed at bolstering companies or unlocking new opportunities. In Dollar General’s case, the merger was pursued to foster growth and secure financial backing for future endeavors.
Details:
The merger gained approval from Dollar General’s shareholders, who each received $22.00 in cash for their shares. Consequently, the company ceased trading publicly on the New York Stock Exchange, transitioning into private ownership.
Impact:
Under private ownership, Dollar General remains committed to its core mission of providing everyday low prices on essential items like food, snacks, and cleaning supplies. The merger solidifies its position in the discount retail landscape, ensuring continuity in its operations.
In summary, Dollar General’s merger with KKR and other investors represents a significant milestone in its evolution as a discount retailer, poised to navigate new opportunities and challenges ahead.
Evolution of Dollar General: Serving Communities Beyond the Stock Exchange
Dollar General’s evolution transcends the confines of the stock exchange, embodying a profound commitment to serving communities nationwide. Originating as a modest variety store, Dollar General’s trajectory has been marked by resilience and adaptability, reflecting its unwavering dedication to meeting the diverse needs of its customers.
Beyond the realm of Wall Street, Dollar General has established itself as a cornerstone of countless communities, particularly in rural and underserved areas where access to affordable goods is limited. Its expansion, spanning thousands of locations across the United States, signifies more than just economic growth; it represents a lifeline for individuals and families seeking quality products at affordable prices.
Dollar General’s evolution underscores a broader narrative of social responsibility and community empowerment. Through initiatives such as literacy programs, disaster relief efforts, and partnerships with local organizations, the company has woven itself into the fabric of society, embodying the ethos of corporate citizenship.
In essence, Dollar General’s journey exemplifies the transformative power of business beyond profit margins. It serves as a testament to the profound impact that a company can have when its mission extends beyond the pursuit of financial gain, embracing a deeper sense of purpose rooted in serving and uplifting communities across the nation.
Successful Tender Offer and Merger Solidify Buck’s Acquisition of Dollar General
Buck, backed by investment funds, recently finalized its acquisition of Dollar General Corporation. Here’s a simplified breakdown:
Merger Completion:
Dollar General merged with affiliates of Kohlberg Kravis & Roberts (KKR), GS Capital Partners, and other equity co-investors. This merger firmly established Dollar General as part of Buck’s portfolio, sealing the deal.
Shareholder Payout:
As per the merger agreement, Dollar General shareholders received $22.00 in cash for each share of Dollar General’s common stock they owned. Shareholders unanimously approved this payout, marking the conclusion of Dollar General’s trading on the New York Stock Exchange.
Tender Offer and Consent Solicitation:
Additionally, Buck successfully conducted a tender offer for Dollar General’s outstanding 8 5/8% notes due June 15, 2010. Approximately 99% of these notes were tendered and accepted for payment. Buck, indirectly controlled by the investors, ensured a seamless transition throughout the process.
In simpler terms, Buck now possesses ownership of Dollar General, with the company’s stock no longer available for public trading. This strategic move enhances Buck’s market position, reflecting a strengthened foothold in the industry.
FAQs
What company recently acquired Dollar General?
Buck, supported by investment funds, recently completed the acquisition of Dollar General Corporation.
Who bought out Dollar General?
Dollar General was bought out by a consortium of investors led by Kohlberg Kravis & Roberts (KKR), GS Capital Partners, and other equity co-investors in a significant acquisition that took place in 2007. This acquisition transitioned Dollar General from a publicly traded company to a privately owned entity under the ownership of the investment consortium, marking a pivotal moment in its corporate evolution.
What did Dollar General shareholders receive as part of the acquisition?
Each Dollar General shareholder received $22.00 in cash for every share of Dollar General’s common stock they owned.
Why did Dollar General’s common stock cease trading on the New York Stock Exchange (NYSE)?
Following the acquisition, Dollar General transitioned into a privately owned entity, leading to the cessation of its trading on the NYSE.
What impact does the acquisition have on Dollar General’s operations?
Under private ownership, Dollar General continues its mission of offering everyday low prices on essential items while enjoying greater flexibility in decision-making and strategic planning.
Conclusion
In conclusion, the acquisition saga of Dollar General Corporation unveils a captivating narrative of strategic maneuvers and corporate transformations. From its humble beginnings to its emergence as a retail powerhouse, Dollar General’s journey reflects resilience and adaptability in the face of change. What company bought out Dollar General? Buck, backed by investment funds, emerged as the new owner, completing a significant milestone in the discount retailer’s history. The acquisition, marked by mergers, private ownership, and tender offers, signifies a new chapter for Dollar General, emphasizing its commitment to serving communities and navigating future opportunities. As Dollar General evolves beyond the stock exchange, its enduring mission to provide affordable essentials remains steadfast, embodying the essence of corporate citizenship and social responsibility.