KKR to buy Dollar General for $6.9 Billion

Private equity group Kohlberg Kravis Roberts said Monday that it will acquire discount retailer Dollar General for $22 a share in cash, or about $6.9 billion.

Dollar General, which operates 8,260 stores, said the deal is expected to close in the third quarter.

The deal marks the latest retail push by KKR, which last week approached British drugs drugstore chain Alliance Bootsabout an $18.8 billon takeover and joined a bidding group that is considering an offer for British grocery-store chain J. Sainsbury.

Including the assumption of $380 million in debt, Dollar General said the deal was valued at about $7.3 billion. The retailer said the price marked a 31% premium over its closing stock price on Friday.

Lazard and Lehman Brothers served as financial advisers to Dollar General, while Goldman advised KKR.