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

The sale concludes a decade-long effort to integrate the struggling chain, allowing Dollar Tree to refocus on its core brand and growth strategy.

Dollar Tree has finalized the sale of 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 will generate $804 million in net proceeds and $350 million in tax benefits for Dollar Tree, which acquired Family Dollar in 2015 for $9 billion.
Family Dollar, which has faced operational challenges, reputational damage, and economic pressures on its low-income customer base, will remain headquartered in Chesapeake, Virginia, under its new ownership.
Dollar Tree's decision to divest Family Dollar follows the closure of nearly 1,000 underperforming stores in 2024 and aligns with its strategy to streamline operations and target higher-income shoppers.
The private equity firms plan to position Family Dollar for growth as an independent company, with Jason Nordin continuing as its president and Duncan MacNaughton returning as chairman.