Dollar Tree (NASDAQ:DLTR) reached an agreement with private equity firm Sycamore Partners to divest 330 Family Dollar (NYSE:FDO) stores. The discount retailer announced last week that it would re-banner a handful of Family Dollar stores upon completion of the acquisition by Dollar Tree for $8.5 billion in January.
Pending the acquisition, Family Dollar's operating income for the 330 stores amounts to approximately $45.5 million. Sycamore Partners plans to operate the 330 stores under the Dollar Express banner.
"The divestiture presents Sycamore Partners with a unique opportunity to continue their track record of meaningful growth and successful retail investments," said Bob Sasser, Dollar Tree's CEO.
The divestiture enables Dollar Tree to address anti-trust concerns made by the Federal Trade Commission. The deal between Dollar Tree and Family Dollar is still subject to FTC review, but the two retailers intend to close the merger in early July.
-See this Dollar Tree press release
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