Dollar Tree Finalizes $1 Billion Sale of Family Dollar to Private Equity Firms

The sale concludes a decade-long struggle to integrate Family Dollar, allowing Dollar Tree to refocus on its core business while Family Dollar transitions to independent ownership.

Dollar Tree has agreed to sell Family Dollar to Brigade Capital Management and Macellum Capital Management for $1 billion, with the deal expected to close in the second quarter of 2025 pending regulatory approval.
Family Dollar will continue to operate as an independent company, retaining its headquarters in Chesapeake, Virginia, under the leadership of its current president, Jason Nordin.
The sale marks the end of Dollar Tree's $9 billion acquisition of Family Dollar in 2015, which faced significant challenges including poor store performance, operational inefficiencies, and competition from Walmart and Dollar General.
Dollar Tree expects to generate $804 million in net proceeds from the sale, along with $350 million in tax benefits from losses incurred in the divestiture.
The divestment allows Dollar Tree to focus on growth initiatives, including new store openings, expanded product offerings, and improving profitability across its core business.