M&A Deal Summary

KKR and Goldman Sachs Merchant Banking Acquire Dollar General

On July 6, 2007, private equity firms KKR and Goldman Sachs Merchant Banking acquired retailer Dollar General for 7.3B USD

Acquisition Highlights
  • This is KKR’s 6th and Goldman Sachs Merchant Banking’s 2nd transaction in the Retail sector.
  • This is KKR’s 12th and Goldman Sachs Merchant Banking’s 7th largest (disclosed) transaction.
  • This is KKR’s 31st and Goldman Sachs Merchant Banking’s 32nd transaction in the United States.
  • This is KKR’s 2nd and Goldman Sachs Merchant Banking’s 1st transaction in Tennessee.
Investment Fate
  • Dollar General went public in 2009.

M&A Deal Summary

Date 2007-07-06
Target Dollar General
Sector Retail
Buyer(s) KKR
Goldman Sachs Merchant Banking
Deal Type Going Private
Deal Value 7.3B USD
Advisor(s) Lazard
Lehman Brothers (Financial)
Wachtell, Lipton, Rosen & Katz (Legal)

Target

Dollar General

Goodlettsville, Tennessee, United States
Dollar General's headquarters in Goodlettsville, Tennessee.
Dollar General's headquarters in Goodlettsville, Tennessee.
Dollar General is a discount retailer offering a variety of apparels, household, cleaning, health, beauty and baby products. Dollar General was incorporated in 1939 and is headquartered in Goodlettsville, Tennessee.

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Buyer(S) 2

Buyer

KKR

New York, New York, United States

Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


DEAL STATS #
Overall 57 of 487
Sector (Retail) 6 of 17
Type (Going Private) 9 of 37
State (Tennessee) 2 of 6
Country (United States) 31 of 210
Year (2007) 6 of 15
Size (of disclosed) 12 of 104
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-01 SBS Broadcasting S.A.

Luxembourg, Luxembourg

SBS Broadcasting S.A. is a European television and radio broadcasting company with complimentary print operations. The Company derives revenue primarily through sales of advertising to multi-national, national, regional and local advertisers and sales of magazine subscriptions.

Sell €3.3B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-08-17 Laureate

Miami, Florida, United States

Laureate is a provider of higher education. The company’s network of 60 accredited campus-based and online universities offers undergraduate and graduate degree programs to more than 740,000 students across 29 countries. Laureate offers more than 130 career-focused, undergraduate, master’s, and doctoral degree programs in fields including architecture, art, business, culinary arts, design, education, engineering, health sciences, hospitality, information technology, law, and medicine. Laureate was founded in 1989 and is based in Miami, Florida.

Buy $3.8B
Buyer

Goldman Sachs Merchant Banking

New York, New York, United States

Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


DEAL STATS #
Overall 46 of 188
Sector (Retail) 2 of 4
Type (Going Private) 7 of 15
State (Tennessee) 1 of 1
Country (United States) 32 of 130
Year (2007) 12 of 21
Size (of disclosed) 7 of 51
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-01 Trident Components Group

London, United Kingdom

Trident Components Group Ltd. is a developing, manufacturing, processing, and assembling light metal components and modules. It manufactures die-cast products in aluminum, magnesium, and zinc, as well as injection molded plastic parts ready for fitting.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-31 Validus Re

Pembroke, Bermuda

Validus Re is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd. and Talbot Holdings Ltd. The company is a Bermuda-based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. Validus Re was founded in 2005 and is based in Pembroke.

Sell -