Dollar Tree Reaches Deal to Sell Family Dollar for $1B
CHESAPEAKE, Va. — Dollar Tree Inc. will sell its Family Dollar business segment to global alternative investment manager Brigade Capital Management LP and investment firm Macellum Capital Management LLC for approximately $1 billion, subject to customary closing conditions.
The deal comes a decade after the discount retailer acquired Family Dollar Stores Inc. for $8.5 billion. Family Dollar will remain headquartered in Chesapeake.
Following a thorough review of potential alternatives for the Family Dollar business segment, Dollar Tree leadership and its board of directors determined that a sale of Family Dollar to Brigade and Macellum would best unlock value for Dollar Tree shareholders and positions Family Dollar for future success, the company said.
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"This is a major milestone in our multiyear transformation journey to help us fully achieve our potential," stated Mike Creedon, CEO of 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."
He added that with the financial support of Brigade and Macellum and the leadership of Family Dollar President Jason Nordin, the brand will be well-positioned for growth as a private company.
"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."
Jonathan Duskin, CEO and Partner of Macellum, added, "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."
Based in Chesapeake, Dollar Tree operates thousands of stores across 48 states and five Canadian provinces.