Monday's Winners & Losers: Dollar Stores

Shares of Dollar General(DG Quote) were among the NYSE's winners Monday, soaring 27% after the retailer agreed to be acquired by Kohlberg Kravis Roberts for about $6.9 billion.

The private equity firm will pay $22 a share, representing a 31% premium to Dollar General's closing price of $16.78 on Friday. Including the assumption of debt, the deal is worth about $7.3 billion. The transaction is expected to close during the third quarter.

Shares of Dollar General were trading up $4.48 to $21.26. The deal sent shares of competitor Family Dollar Stores(FDO Quote) up 10% to $31.43, while Dollar Tree(DLTR Quote) was adding 80 cents, or 2.2%, to $36.46.

Sierra Health Systems(SIE Quote) surged 16% after the health care services company agreed to be acquired by UnitedHealth Group(UNH Quote) for about $2.6 billion in cash. The deal is worth $43.50 a share, representing a 21% premium over Sierra Health's closing price of $35.90 on Friday. The acquisition is expected to close by the end of 2007 or sooner. Shares of Sierra Health were up $5.63 to $41.53.

Shares of Spartech(SEH Quote) rose 8% after the plastics maker posted better-than-expected first-quarter earnings. For the period ended Feb. 3, the company earned $8.1 million, or 25 cents a share, on revenue of $347.3 million. Analysts polled by Thomson First Call expected earnings of 20 cents a share and a top line of $349.8 million. A year earlier, the company earned $5.7 million, or 18 cents a share, on revenue of $343.6 million.

For 2007, Spartech now sees earnings of $1.55 to $1.62 a share. Previously, the company predicted earnings of $1.55 to $1.60 a share. Analysts project earnings of $1.57 a share. Shares were adding $2.07 to $28.38.