Shareholders of Dollar General voted to approve an offer by Kohlberg Kravis Roberts' Buck Acquisition Corp. to take the retail chain private. In a related announcement, David Perdue, chairman and CEO of Dollar General, said he would resign upon completion of the deal.
Mr. Perdue said in a released statement, "This event marks a major milestone in the long and successful history of Dollar General. I believe that the merger is the right next step for Dollar General and I have confidence that KKR is committed to investing for the future competitiveness and growth of this great company."
KKR takes over a Dollar General chain that has struggled in recent years as rising energy costs and other factors have hurt its core low-income consumer base. Last year, Dollar General announced it would close some 400 stores while slowing its expansion pace. It is widely believed that KKR will look to close even more stores while further paring the number of new units being opened.
Dollar General president and COO David Bere will serve as interim CEO of the company until a replacement can be found for Mr. Perdue.
Discussion Questions: What do you expect the future to hold for Dollar General now that KKR is taking it private? What do you see as the most immediate needs for the chain's new owners to address?