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CHESAPEAKE, Va. – Dollar Tree, Inc. announced Wednesday that has an agreement to divest its Family Dollar business segment to Brigade Capital Management, LP and Macellum Capital Management, LLC. The deal, valued at approximately $1.007 billion, is subject to customary closing adjustments and is expected to finalize in the second quarter of 2025, pending regulatory approvals.
This transaction concludes Dollar Tree’s previously announced strategic review of Family Dollar. Company executives stated that the sale would best position Family Dollar for future growth while allowing Dollar Tree to sharpen its focus on core business strategies.
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon, Chief Executive Officer, Dollar Tree, Inc. “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.”
Mr. 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.”
Matt Perkal, Partner at Brigade, said, “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. 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.”
“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.”
Duncan MacNaughton added, “I am excited to collaborate with the Family Dollar team and our incredibly capable and supportive new investors to drive the business forward in this next chapter of its evolution. Family Dollar has a tremendous potential to grow and succeed as an independent company, and I am honored to be able to play a role in helping the company fully realize that opportunity.”
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon, CEO of Dollar Tree, Inc. “We will continue to expand our Dollar Tree brand, optimize our store network, and drive value for our associates, customers, and shareholders.”
Family Dollar, which will remain headquartered in Chesapeake, Virginia, will transition to private ownership under the leadership of its current president, Jason Nordin. The deal includes financial backing from Brigade and Macellum, with additional investment support from Wells Fargo, RBC Capital Markets, and WhiteHawk Capital Partners.
The transaction marks a new chapter for Family Dollar, aiming to strengthen its ability to provide affordable and essential goods to customers. With financial and operational backing from its new ownership, the retailer is expected to focus on growth and improved customer service in the competitive discount retail sector.
Dollar Tree's financial advisor was J.P. Morgan Securities LLC, while Davis Polk & Wardwell LLP provided legal counsel. Jefferies LLC, RBC Capital Markets, and legal advisors from Paul, Weiss, Rifkind, Wharton & Garrison LLP advised Brigade and Macellum.
