Dollar Tree recently announced that it has reached an agreement to divest its Family Dollar business segment to Brigade Capital Management and Macellum Capital Management for around $1 billion. Family Dollar will remain headquartered in Chesapeake, Va.
Dollar Tree acquired the brand in 2015 for $8.5 billion.
After a review of potential alternatives for the Family Dollar business segment, the Dollar Tree leadership team and board of directors determined that a sale of Family Dollar to Brigade and Macellum “best unlocks value for Dollar Tree shareholders and positions Family Dollar for future success.”
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon, CEO, Dollar Tree. “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.”
Creedon continued, “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.”
“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,” said Matt Perkal, Partner at Brigade. “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.”
The transaction is anticipated to close later in the second quarter of 2025, subject to standard closing conditions and regulatory approvals. J.P. Morgan Securities is serving as financial advisor and Davis Polk & Wardwell is serving as legal advisor to Dollar Tree.
“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,” added Jonathan Duskin, CEO and Partner of Macellum. “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.”
Dollar Tree, a Fortune 200 Company, operated 16,500 stores across 48 states and five Canadian provinces as of Feb. 1, 2025.
