Sunday, March 25, 2007

Hit #153 (Dollar General)

Dollar General (DG) is being taken private by KKR in a mega deal valuing the company at $7 billion. The offer, cash of course, translates to $22/share, a gain of 14.5% over my average cost of $19.21/share.

Dollar stores have been expanding at a steady pace. I mentioned a few of them in this post after an earlier Arizona trip. The other dollar stores listed in that post, Dollar Tree (DLTR), 99 Cents Only (NDN), Family Dollar (FDO) may all end up with other/larger retailers, but for now they all look expensive following the Dollar General deal.

This buyout follows a similar, but much smaller deal for Smart & Final (Hit #145). And there is more to come!

Previous hit - SafeNet(#152)


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