Tuesday, March 13, 2007
The buyout firm KKR announced that it would take the discount stores chain, Dollar General, private in a $6.9 billion deal. Shareholders will receive $22 per share. There have been rumors for months that Dollar General would be taken private, as it has closed numerous stores to cut profits. See NY Times, Buyout Firm Is Acquiring Dollar General Retail Chain . The WSJ explains that Wall St. views retailers as cash cows, not growth businesses, and appeal more to private equity firms than to public investors. See WSJ, KKR Spots Cash in Dollar General's Till.