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4w ago

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.

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Overview

  • 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.