Dollar Tree Announces Agreement to Divest Its Family Dollar Business to Brigade Capital Management and Macellum Capital Management
Dollar Tree (NASDAQ: DLTR) has announced an agreement to sell its Family Dollar business segment to Brigade Capital Management and Macellum Capital Management for $1.007 billion. The transaction, expected to close in Q2 2025, follows a strategic review of alternatives for the Family Dollar business.
Family Dollar will continue to operate from Chesapeake, Virginia, as a private company under the leadership of Family Dollar President Jason Nordin. Duncan MacNaughton will join as Chairman, bringing his experience as a former President and Chief Operating Officer.
The divestiture aims to unlock value for Dollar Tree shareholders while allowing Dollar Tree to focus on growth initiatives, including expanded assortment and new store openings. For Family Dollar, the transition to private ownership under Brigade and Macellum is expected to strengthen its ability to provide affordable goods to customers.
Dollar Tree (NASDAQ: DLTR) ha annunciato un accordo per vendere il suo segmento di business Family Dollar a Brigade Capital Management e Macellum Capital Management per 1,007 miliardi di dollari. La transazione, prevista per chiudere nel secondo trimestre del 2025, segue una revisione strategica delle alternative per il business di Family Dollar.
Family Dollar continuerà a operare da Chesapeake, Virginia, come azienda privata sotto la leadership del Presidente di Family Dollar, Jason Nordin. Duncan MacNaughton entrerà come Presidente, portando con sé la sua esperienza come ex Presidente e Chief Operating Officer.
La dismissione mira a sbloccare valore per gli azionisti di Dollar Tree, consentendo a Dollar Tree di concentrarsi sulle iniziative di crescita, inclusi un assortimento ampliato e nuove aperture di negozi. Per Family Dollar, la transizione verso la proprietà privata sotto Brigade e Macellum dovrebbe rafforzare la sua capacità di fornire beni a prezzi accessibili ai clienti.
Dollar Tree (NASDAQ: DLTR) ha anunciado un acuerdo para vender su segmento de negocio Family Dollar a Brigade Capital Management y Macellum Capital Management por 1.007 mil millones de dólares. Se espera que la transacción se cierre en el segundo trimestre de 2025, tras una revisión estratégica de las alternativas para el negocio de Family Dollar.
Family Dollar continuará operando desde Chesapeake, Virginia, como una empresa privada bajo el liderazgo del Presidente de Family Dollar, Jason Nordin. Duncan MacNaughton se unirá como Presidente, aportando su experiencia como ex Presidente y Director de Operaciones.
La desinversión tiene como objetivo desbloquear valor para los accionistas de Dollar Tree, mientras permite a Dollar Tree centrarse en iniciativas de crecimiento, incluyendo una mayor variedad y nuevas aperturas de tiendas. Para Family Dollar, se espera que la transición a la propiedad privada bajo Brigade y Macellum fortalezca su capacidad para ofrecer productos asequibles a los clientes.
Dollar Tree (NASDAQ: DLTR)는 Family Dollar 사업 부문을 Brigade Capital Management와 Macellum Capital Management에 10억 7백만 달러에 판매하기로 합의했다고 발표했습니다. 이 거래는 2025년 2분기에 마감될 것으로 예상되며, Family Dollar 사업에 대한 전략적 대안 검토에 이어 이루어졌습니다.
Family Dollar는 Virginia 주 Chesapeake에서 계속 운영되며, Family Dollar의 사장인 Jason Nordin의 리더십 하에 사기업으로 남게 됩니다. Duncan MacNaughton은 의장으로 합류하여, 이전 사장 및 최고 운영 책임자로서의 경험을 가져옵니다.
이번 매각은 Dollar Tree 주주에게 가치를 창출하는 동시에 Dollar Tree가 확대된 품목 및 새로운 매장 개설을 포함한 성장 이니셔티브에 집중할 수 있도록 하는 것을 목표로 합니다. Family Dollar에게는 Brigade와 Macellum의 사적 소유로의 전환이 고객에게 저렴한 상품을 제공할 수 있는 능력을 강화할 것으로 예상됩니다.
Dollar Tree (NASDAQ: DLTR) a annoncé un accord pour vendre son segment d'activité Family Dollar à Brigade Capital Management et Macellum Capital Management pour 1,007 milliard de dollars. La transaction, prévue pour être finalisée au deuxième trimestre 2025, fait suite à un examen stratégique des alternatives pour l'activité Family Dollar.
Family Dollar continuera à opérer depuis Chesapeake, Virginie, en tant qu'entreprise privée sous la direction du Président de Family Dollar, Jason Nordin. Duncan MacNaughton rejoindra en tant que Président, apportant son expérience en tant qu'ancien Président et Directeur des opérations.
La cession vise à débloquer de la valeur pour les actionnaires de Dollar Tree tout en permettant à Dollar Tree de se concentrer sur des initiatives de croissance, y compris une gamme élargie et l'ouverture de nouveaux magasins. Pour Family Dollar, la transition vers la propriété privée sous Brigade et Macellum devrait renforcer sa capacité à fournir des biens abordables aux clients.
Dollar Tree (NASDAQ: DLTR) hat eine Vereinbarung angekündigt, um sein Family Dollar Geschäftsfeld an Brigade Capital Management und Macellum Capital Management für 1,007 Milliarden Dollar zu verkaufen. Die Transaktion, die voraussichtlich im 2. Quartal 2025 abgeschlossen wird, folgt einer strategischen Überprüfung von Alternativen für das Family Dollar Geschäft.
Family Dollar wird weiterhin von Chesapeake, Virginia, als privates Unternehmen unter der Leitung von Family Dollar Präsident Jason Nordin operieren. Duncan MacNaughton wird als Vorsitzender hinzukommen und bringt seine Erfahrung als ehemaliger Präsident und Chief Operating Officer mit.
Die Veräußering zielt darauf ab, Wert für die Dollar Tree Aktionäre zu schaffen, während Dollar Tree sich auf Wachstumsinitiativen konzentrieren kann, einschließlich einer erweiterten Produktpalette und der Eröffnung neuer Geschäfte. Für Family Dollar wird erwartet, dass der Übergang zu privatem Eigentum unter Brigade und Macellum die Fähigkeit stärkt, den Kunden erschwingliche Waren anzubieten.
- Sale of Family Dollar segment for $1.007 billion strengthens Dollar Tree's financial position
- Strategic focus on core Dollar Tree business growth and optimization
- Elimination of operational complexity by separating the two businesses
- Significant reduction in overall company size and market presence
- Loss of diversification and multi-price point strategy
- Extended timeline until deal closure (Q2 2025) creates execution uncertainty
Insights
Dollar Tree's divestiture of Family Dollar for
The sale price of
With this transaction, Dollar Tree can now redirect capital and management attention toward its core Dollar Tree brand, which has historically delivered stronger margins and more consistent performance. Management highlighted several strategic initiatives including expanded product assortment and accelerated new store openings that could drive improved returns on invested capital.
For investors, this move signals management's commitment to streamlining operations and focusing on areas with greater growth potential. The Family Dollar business will transition to private ownership under Brigade and Macellum, with leadership from industry veterans including former Family Dollar President and COO Duncan MacNaughton serving as Chairman.
The anticipated Q2 2025 closing timeline suggests a relatively straightforward regulatory approval process, minimizing execution risk. This strategic realignment could potentially lead to improved financial metrics and valuation multiples as Dollar Tree transforms into a more focused, higher-margin retailer.
This divestiture represents a critical strategic reset for Dollar Tree, effectively unwinding what had become one of retail's most challenging large-scale acquisitions. The
The acquisition by Brigade and Macellum, combined with Duncan MacNaughton's involvement as Chairman, suggests a potential turnaround strategy for Family Dollar as a standalone entity. MacNaughton's previous experience as Family Dollar's President and COO provides valuable institutional knowledge that could help address the brand's positioning challenges in the competitive discount retail landscape.
For Dollar Tree, this transaction creates a cleaner operational structure focused on its namesake brand, which has demonstrated stronger consumer resonance with its single-price-point model. The company's reference to an "expanded assortment" indicates potential further evolution of its merchandise strategy, possibly building on its multi-price point initiatives.
This move follows a broader industry trend of retailers divesting underperforming segments to focus on core competencies. The transaction allows Dollar Tree to allocate capital more efficiently toward its higher-performing banner while maintaining a more focused strategic direction. Family Dollar's continued headquarters presence in Chesapeake suggests some operational continuity despite the ownership change.
This strategic realignment positions Dollar Tree to better address evolving consumer preferences in the value retail space while freeing the company from the operational challenges of managing what had become an increasingly disparate dual-banner strategy.
- Transaction completes previously announced review of Strategic Alternatives for Family Dollar Business
The purchase price for Family Dollar, under the terms of the agreement, is
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
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
“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.”
Transaction Timing and Details
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 in connection with the acquisition of Family Dollar. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor in connection with the transaction. Wells Fargo, RBC Capital Markets, and WhiteHawk Capital Partners are providing financing for the transaction.
About Dollar Tree, Inc.
Dollar Tree, a Fortune 200 Company, operated 16,500 stores across 48 states and five Canadian provinces as of February 1, 2025. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada. To learn more about the Company, visit www.DollarTree.com.
About Brigade Capital Management
Brigade Capital Management is a global asset management firm founded in 2006 with over
About Macellum Capital Management
Macellum Capital Management is an investment firm founded in 2009 that invests in undervalued companies that it believes can appreciate significantly in value through changes in strategy, capital allocation and improvements in operations. The firm has substantial experience investing in consumer and retail companies. Macellum’s investment team and advisors work collaboratively with companies and draw upon their extensive strategic and operating experience to assist companies in designing and implementing initiatives to improve long-term performance.
A WARNING ABOUT FORWARD-LOOKING STATEMENTS: This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this communication that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: “anticipate,” “appear,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “seek,” “should,” “strategy,” “will,” “can,” “could,” “predict,” “possible,” “future,” “potential,” “look,” “build,” “focus,” “create,” “work,” “continue,” “target,” “poised,” “advance,” “drive,” “aim,” “approach,” “seek,” “schedule,” “position,” “pursue,” “progress,” “budget,” “outlook,” “trend,” “guidance,” “commit,” “on track,” “objective,” “goal,” “opportunity,” “ambitions,” “view”, “aspire” and variations of negatives of such terms and variations thereof. Other words and terms of similar meaning or import in connection with any discussion of future plans, actions, events or operating, financial or other performance identify forward-looking statements. These statements are subject to risks and uncertainties. In particular, our forward-looking statements include statements regarding our pending sale of Family Dollar, which is subject to closing conditions and a number of adjustments to the purchase price, and which may not be completed in a timely fashion or at all, disrupt our business operations, be more difficult or costly than expected or fail to achieve the anticipated benefits. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the “Risk Factors,” “Business” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Form 10-K filed March 20, 2024 and other filings we make from time to time with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date the statement is made and we are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so. It is not possible to identify all of the risks, uncertainties and other factors that may affect future results. In light of these risks and uncertainties, the forward-looking events and circumstances discussed herein may not occur and actual results may differ materially from those anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250326762209/en/
Investors:
Robert A. LaFleur
SVP, Investor Relations
investorinfo@dollartree.com
Media:
Kate Kirkpatrick
VP, Communications
mediainquiries@dollartree.com
For Brigade and Macellum:
Josh Clarkson, Anne Hart
pro-brigade@prosek.com
Source: Dollar Tree, Inc.
FAQ
How much is Brigade Capital and Macellum paying for Dollar Tree's Family Dollar segment?
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