Dollar Tree Completes Family Dollar Sale
Dollar Tree has completed the sale of Family Dollar to two private equity firms in a deal valued at just more than $1 billion.
Net proceeds from the sale are estimated to total approximately $800 million, comprising $665 million paid at closing and approximately $135 million as a result of the monetization of cash before closing through a reduction of net working capital.
The retailer now expects the economic impact of tax benefits from losses on the sale to be approximately $375 million. These amounts are subject to final adjustment approximately 90 days after the closing date. Brigade Capital Management, LP, and Macellum Capital Management, LLC, are now the new owners of Family Dollar.
“The completion of this transaction marks a defining moment for Dollar Tree,” said Mike Creedon, CEO of Dollar Tree, Inc. “With a singular focus on our core business, we are doubling down on what we do best, delivering value, convenience, and discovery to our customers every day. Now more than ever before, we are poised to accelerate our growth, innovate faster, and unlock our full potential as a category leader in value retail.”
As a standalone company, Dollar Tree said it will continue to grow through initiatives such as its expanded assortment, new store growth, and attracting new customers. Since the company’s founding nearly 40 years ago, Dollar Tree has grown to a 9,000-store footprint.
The transaction was announced on March 26, 2025, and concludes Dollar Tree’s review of strategic alternatives for the Family Dollar business segment, which began in June 2024.
