Private Equity Investment Grows Dollar General into one of the Nation’s Largest, Most Successful Retailers

Judge: “Dollar General is one of many examples of household names reenergized by private equity.”

Often left out of the conversation surrounding the presidential election, private equity is about investing in and growing companies with potential over the long term. Today, the Private Equity Growth Capital Council released its latest video as part of its Private Equity at Work campaign featuring Dollar General, now the nation’s largest small-box discount retailer by store count.  Since partnering with KKR in 2007, Dollar General has opened more than 2,000 new stores, created over 20,000 new jobs, and has grown revenue by 56 percent.

“Dollar General is one of many examples of household names reenergized by private equity. KKR’s private equity investment in Dollar General exemplifies how private equity can transform a company to make it one of the largest and most successful in its industry, while creating tens of thousands of jobs in the process,” said Steve Judge, president and CEO of the Private Equity Growth Capital Council.

Headquartered in Goodlettsville, Tennessee, Dollar General’s growth and profitability had slowed and was in need of a new course. KKR identified that the retailer could improve the business at the store and distribution levels and dramatically increase the company’s reach. As a result of their efforts, Dollar General increased employment in 40 states and has over 10,000 stores today.

“If you look back at the involvement with private equity since 2007, their help in developing a concise, consistent business plan, their ability to be there for advice, and their ability to help us attract good quality people has really been a key ingredient of making it successful for everybody,” said Rick Dreiling, Chairman and CEO of Dollar General in the video.

“Dollar General is a case study of how you take a business that is a good business, bring all the resources of KKR to bear to fix the issues, turn the business around, grow it, create jobs, and create opportunities,” said Mike Calbert, KKR’s Head of Retail Industry Team in the video. “That is what private equity is all about.”

Investment Highlights:

Between 2007 and 2011, Dollar General grew revenue by 56 percent.

Over that same period, the company created more than 20,000 new jobs. The company currently employees approximately 91,000 people total.

In March, 2012, Dollar General opened its 10,000th store. Today, it is the largest retailer by store count.