KKR Leverages Former Relationships to Acquire Dollar General

KKR Leverages Former Relationships to Acquire Dollar General

Kohlberg Kravits Roberts & Co (KKR) is using its relationships from former successful deals to drive its current deal-flow.  The most recent example of this is the acquisition of Dollar General.  An IntellectSpace analysis of common connections between KKR and Dollar General reveals that the two firms are quite connected.  The primary relationships between them are via Safeway, Kraft, Beatrice Co, Bruno Inc, and several universities.

Taking a closer look at the two firms’ common connections, it is likely that the acquisition discussions were spurred and led by those relationships involving Bruno’s Inc.  Relationships involving this company include:

- James Hagan was the CFO of Dollar General for many years, and was the CFO of Bruno’s Inc prior to his position at Dollar General

- Kravis, Roberts, & Raether all served on the board of Bruno’s while Hagan was the CFO

However, Dollar General’s former President and COO, Lawrence Jackson, may have also played a key role.  Jackson spent much of his career at Safeway, where 5 KKR professionals assumed board seats – among those 5 professionals were Kravis and Roberts.  Both Kravis and Roberts assuredly had relationships with both Hagan and Jackson, so the high-level discussions likely involved these 4 individuals.

Lastly, Lawrence Jackson attended Harvard Business School, along with at least 4 KKR professionals.  Since HBS students are typically strong networkers, it is very possible that HBS alumni played a role in facilitating this deal.

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