Dollar Tree to Sell Family Dollar Business to Brigade Capital
Chesapeake, Virginia – Dollar Tree, Inc. (NASDAQ: DLTR) recently revealed that it has entered into an agreement with Brigade Capital Management, LP, and Macellum Capital Management, LLC for them to acquire the Family Dollar business segment owned by the company. The amount set for the purchase of Family Dollar under this agreement is $1,007.0 million, subject to the usual closing adjustments. Family Dollar will remain in Chesapeake, Virginia, after the sale.
The decision to divest the Family Dollar business is the result of an extensive review of strategic alternatives by Dollar Tree. After careful consideration, the leadership team and Board of Directors determined that selling Family Dollar to Brigade and Macellum was the best option to maximize value for Dollar Tree’s shareholders and set Family Dollar on a path to future success.
Mike Creedon, Chief Executive Officer at Dollar Tree, expressed his enthusiasm for this new chapter, stating that this agreement marks a significant milestone in the company’s ongoing transformation efforts to unlock its full potential. Emphasizing Dollar Tree’s commitment to enhancing its core business, he highlighted key initiatives such as expanding their product assortment, opening new stores nationwide, and pursuing growth-focused transactions.
Creedon is confident that with the guidance of Family Dollar President Jason Nordin and the financial backing of Brigade and Macellum, Family Dollar will thrive as a private entity. He mentioned that under the stewardship of these experienced investors, Family Dollar is well-positioned for future growth and better equipped to deliver affordable products and essential goods to customers across the United States.
Echoing Creedon’s sentiment, Matt Perkal, a Partner at Brigade, expressed excitement about collaborating with Family Dollar, a business deeply rooted in American communities since its inception in 1959. Perkal affirmed his team’s commitment to preserving Family Dollar’s legacy while driving future success and creating value for all stakeholders, including employees, customers, and the broader community.
Jonathan Duskin, CEO and Partner at Macellum, shared Perkal’s enthusiasm, emphasizing the unique opportunity presented by this transaction to revitalize a well-loved brand. He lauded the dedicated executives he had encountered throughout the process and expressed his eagerness to leverage his team’s strategic plan to propel Family Dollar to new heights. Duskin also highlighted Duncan MacNaughton’s role as Chairman, bringing valuable insights and industry experience to the table.
Duncan MacNaughton himself expressed his excitement at the prospect of collaborating with the Family Dollar team and the new investors. He believes that Family Dollar has enormous growth potential as an independent entity and is honored to be a part of its continued journey towards success.
The transaction, subject to customary closing conditions and regulatory approvals, is expected to be finalized in the second quarter of 2025. J.P. Morgan Securities LLC and Davis Polk & Wardwell LLP are advising Dollar Tree on the deal, while Jefferies LLC, RBC Capital Markets, and Paul, Weiss, Rifkind, Wharton & Garrison LLP are representing Brigade and Macellum in the acquisition of Family Dollar, with financial support from Wells Fargo, RBC Capital Markets, and WhiteHawk Capital Partners.
Named as a Fortune 200 Company, Dollar Tree currently operates thousands of stores across the United States and Canada under various brands. Brigade Capital Management and Macellum Capital Management, the prospective new owners of Family Dollar, both share a commitment to investing in undervalued companies and driving growth through strategic initiatives and operational improvements. Their collaboration with Family Dollar signifies a new chapter in the retail giant’s journey towards sustained success and growth.
