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4w ago

Dollar Tree Sells Family Dollar to Private Equity Firms for $1 Billion

The sale marks the end of a decade-long struggle to integrate Family Dollar and allows Dollar Tree to refocus on its core business.

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A Family Dollar Stores location.
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FILE - A woman leaves a Dollar Tree store in Urbandale, Iowa, on Feb. 25, 2021. (AP Photo/Charlie Neibergall, file)

Overview

  • Dollar Tree finalized an agreement 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.
  • The sale is projected to generate over $800 million in net proceeds, which Dollar Tree plans to use to strengthen its core operations and transformation strategy.
  • Family Dollar, acquired by Dollar Tree in 2014 for over $9 billion, faced persistent challenges including poor store locations, supply chain inefficiencies, and rising theft.
  • Competition from larger retailers like Walmart and negative publicity, such as a rat-infested warehouse, further hindered Family Dollar's performance.
  • Dollar Tree's stock rose nearly 7% in premarket trading following the announcement, signaling investor confidence in the company's strategic pivot.