Dollar Tree said Wednesday it is selling its Family Dollar division to a partnership of Brigade Capital Management and Macellum Capital Management for just over $1.007 billion. Photo by CJ Gunther/EPA-EFE
March 26 (UPI) — Dollar Tree said Wednesday it is selling its Family Dollar division to a partnership of Brigade Capital Management and Macellum Capital Management for just over $1 billion.
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Dollar Tree CEO Mike Creedon in a statement. “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.”
Dollar Tree said selling the Family Dollar business “best unlocks value for Dollar Tree shareholders and positions Family Dollar for future success.”
The Family Dollar headquarters will stay in Chesapeake, Va.
“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,” Brigade Capital partner Matt Perkal said in a statement.
Former Dollar Tree President and CEO Duncan McNaughton will become Chairman of the company.
“This transaction presented a unique opportunity to play a key role in reinvigorating an iconic business,” Macellum CEO Jonathan Duskin said in a statement.
Duncan said McNaugton’s insights into Dollar Tree will be “invaluable.”
“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,” McNaughton said.
The deal is expected to closed in the second quarter of 2025.
In March 2024, Dollar Tree announced a fourth quarter operating loss of $1.89 billion as it announced it would close 1,000 Family Dollar stores.
Dollar Tree said then they were ” still in the early stages of our transformation journey.”
In February 2024 Family Dollar pleaded guilty and agreed to pay $41.675 million – the largest-ever food safety criminal penalty – for storing food, drugs, medical devices and cosmetics in a rodent-infested warehouse.
