Dollar Tree has reached an agreement to sell its Family Dollar business for $1 billion to Brigade Capital Management LP and Macellum Capital Management LLC.
After a review of potential alternatives, the Dollar Tree leadership team and board of directors determined that a sale of Family Dollar to Brigade and Macellum offered the best value for Dollar Tree shareholders and positions Family Dollar for future success.
Dollar Tree acquired Family Dollar in 2015, following a lengthy bid for the company against competitor Dollar General.
The transaction is anticipated to close later in the second quarter of 2025, subject to standard closing conditions and regulatory approvals. Family Dollar will remain headquartered in Chesapeake, Virginia.
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Dollar Tree CEO Mike Creedon.
“We will continue to grow and optimize our Dollar Tree business to maximize value for Dollar Tree associates, customers and shareholders with an enhanced focus on compelling initiatives, including our expanded assortment, significant planned new store openings across the United States and transactions that advance our growth strategy.
“Under the experienced, dynamic leadership of Family Dollar President Jason Nordin, and with the financial support of Brigade and Macellum, Family Dollar will be well-positioned for growth as a private company. With the support of a dedicated team, Family Dollar will be able to strengthen its commitment to providing affordable and essential goods to customers so they can do more with less.”
Matt Perkal, partner at Brigade, said, “Since 1959, Family Dollar has served its customers by offering convenient, high-quality products at a great value, and the business is a pillar in communities across the United States. We look forward to continuing and enhancing Family Dollar as its own enterprise, which we are confident will drive greater success for the business and value for all of Family Dollar’s stakeholders, including employees, customers and communities.”
Jonathan Duskin, CEO and partner of Macellum, added, “This transaction presented a unique opportunity to play a key role in reinvigorating an iconic business. Throughout this process we have met an exceptional group of executives that are dedicated to the company and its customers. We look forward to executing the strategic plan we have developed together. In particular, we are excited that Duncan MacNaughton will be joining the company as chairman, where his insights as a former president and chief operating officer of the company and broader industry experience will be invaluable.”
MacNaughton said he is excited to collaborate with the Family Dollar team and its new investors.
“Family Dollar has a tremendous potential to grow and succeed as an independent company, and I am honored to be able to play a role in helping the company fully realize that opportunity,” he said.
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About Dollar Tree Inc.
Dollar Tree, a Fortune 200 company, operated 16,500 stores across 48 states and five Canadian provinces as of Feb. 1. Stores operate under the brands of Dollar Tree, Family Dollar and Dollar Tree Canada.