There's a new dollar store chain—Dollar Express debuted today with the announcement that 330 former Family Dollar stores will now be operated under the new banner.
Dollar Tree (NASDAQ:DLTR) and Family Dollar announced plans to merge in 2014, following a bidding war between Family Dollar and Dollar General. Ultimately, Dollar Tree paid $8.5 billion and was forced to sell 330 units to satisfy the Federal Trade Commission and finalize the deal.
Sycamore Partners bought the units and today revealed the new retail name.
"We are pleased to have completed this acquisition, which adds to our growing portfolio of leading retailers and consumer brands," said Peter Morrow, managing director at Sycamore Partners. "We look forward to operating these 330 stores as Dollar Express, a brand new, nationwide discount retailer that is well-positioned as an innovator in the market. We believe our significant experience with carve-out transactions will be beneficial in supporting the Dollar Express team to serve our loyal customers and create value."
Dollar Tree operates close to 14,000 U.S. locations and competitor Dollar General has nearly 13,000 stores. Still, the consolidation has created a vacuum in which the new Dollar Express hopes to operate, becoming a part of the ever-expanding deep discount category.
Dollar Tree management is also planning to make changes to Family Dollar stores following the merger by rebranding some locations and cleaning up stores.
-See this Dollar Tree announcement
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