Dollar General, Profiting on the Recession, Pays Off for KKR

Here's how fortunes in the leveraged buyout world have changed: The best-performing deal of billionaire Henry Kravis's empire is a deep-discount retailer selling $1 dog treats and $2 bleach to lower-income shoppers.

Dollar General Corp., owned by private-equity firm Kohlberg Kravis Roberts & Co., on Tuesday reported that fiscal-fourth-quarter net income climbed 48% amid increased traffic and transaction size. Sales gains recorded in the period also continued into February, the discount retailer said.

The company, which was acquired by KKR in 2007, said its net income rose to $81.9 million from $55.4 million for the quarter ended Jan. 30. Revenue rose 11% to $2.85 billion as same-store sales climbed 9.4% Gross margin widened to 29.4% from 28.9% on reduced theft and higher average initial prices.

Read Full Article from Wall Street Journal

- Posted: 2009-03-24 09:56:14

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