If you’ve ever taken your kids into the dollar store, and bought one of those candy-filled grab bags – you know that sometimes you get lucky, sometimes you don’t. Well, investment firm KKR has been putting together their own grab bag of investments over the past several years, and while most have turned out to be stale candy corn, their acquisition of Dollar General, has turned out to be the full-sized chocolate bar.
KKR as a whole is bleeding money, with reported 2008 losses of $1.2 billion. After buying 6 new companies in 2007, five of them were down in value by 20 to 50 percent. The only one making money was Dollar General, which reported revenues of $10.5 billion in 2008.
While companies like Tiffany’s and Sak’s Fifth Avenue are struggling to survive, Dollar General is planning 450 new stores which will generate over 4000 new jobs.
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