Kohlberg Kravis Roberts (KKR), the US private equity firm yesterday bought Dollar General, a discount retailer in the US, for US$6.9bn (£3.5bn). KKR is interested in retailers, as it is part of the consortium of private equity companies eyeing the Sainsbury's supermarket chain and it belongs to a group of private equity companies looking at Coles Group, Australia's second-largest retail company.

Dollar General has 8,260 stores across the US, mainly in rural areas. The discount stores sell a variety of products including food and cleaning supplies, with more than a third of its items priced at less than one dollar. Dollar General had come under pressure from retail giants such as Wal-Mart in recent years. The company said it would relocate or renovate some 600 stores over the next two years after it recorded a US$5.3m loss over Christmas.

KKR said in a statement that it supported the retailer's recovery strategy and would look to accelerate its restructuring plan. Dollar General's board approved the deal. KKR will pay US$22 a share to acquire the retailer, a 31 per cent premium to the closing share price on Friday. The private equity company will also take on debt of US$380mn. (Source: The Independent).