Dollar General

Goodlettsville, Tennessee

Partnership Grows

Dollar General is the largest small-box discount retailer by revenue in the United States. The 72-year-old company offers a wide variety of everyday merchandise and unique items at low prices in convenient locations. In 2007, KKR purchased Dollar General for $7.6 billion. Since then, Dollar General’s partnership with KKR has been a story of growth. Working together with Dollar General CEO Rick Dreiling and a highly experienced management team, we focused on improving store standards and product sourcing, redesigning core merchandising processes, expanding the private label business and reducing out-of-stocks.

Through operating initiatives and renewed focus on retailing discipline, the company expanded its stores, grew sales and improved margins. From 2007 to the end of its 2010 fiscal year, Dollar General grew revenue by 37 percent while increasing adjusted EBITDA by 126 percent. During this same period, approximately 15,000 positions were created, and the company avoided 160,000 metric tons of greenhouse gas emissions through participation in KKR’s Green Portfolio Program. In November 2009, the company went public in the largest retail IPO in 14 years, with KKR Capital Markets serving as one of the lead bookrunners. With revenues of $13 billion for the fiscal year 2010, Dollar General is now one-and-a-half times larger than its nearest direct-retail competitor.