CHESAPEAKE, Va.–(BUSINESS WIRE)–Dollar Tree, Inc. (NASDAQ: DLTR) today announced that the Company has reached an agreement under which Brigade Capital Management, LP (“Brigade”) and Macellum Capital Management, LLC (“Macellum”) will partner to acquire the Company’s Family Dollar business segment. Family Dollar will remain headquartered in Chesapeake, Virginia.
The purchase price for Family Dollar, under the terms of the agreement, is $1,007.0 million, subject to customary closing adjustments. After a thorough 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, 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.”
The companies announced that Duncan MacNaughton will be joining Family Dollar as Chairman. MacNaughton previously served as President and Chief Operating Officer of the company.
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 LLC is serving as financial advisor and Davis Polk & Wardwell LLP is serving as legal advisor to Dollar Tree. Jefferies LLC is serving as lead financial advisor to Brigade and Macellum, and RBC Capital Markets is also serving as financial advisor. Wells Fargo, RBC Capital Markets, and WhiteHawk Capital Partners are providing financing for the transaction.
