Chesapeake, Va. – Dollar Tree Inc. plans to sell the Family Dollar business to a pair of firms that have been active in the “go-private” push at retail.
Dollar Tree today announced that it has reached an agreement under which Brigade Capital Management and Macellum Capital Management will partner to acquire the Family Dollar business segment. Family Dollar will remain headquartered in Chesapeake, Va.
The purchase price for Family Dollar, under the terms of the agreement, is $1.007 billion, subject to customary closing adjustments.
In 2023, Brigade Capital teamed with Arkhouse Management in an effort to buy out Macy’s Inc. and take it private, a proposal Macy’s closed the door on in July 2024. A subsidiary of Macellum lead the charge to privatize Kohl’s, an initiative that ran from 2021 to 2022.
Mike Creedon, CEO of Dollar Tree Inc., said the acquisition deal will fortify Family Dollar’s future.
“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,” he said.
Family Dollar operates roughly 7,625 stores. Last summer Dollar Tree announced it was seeking a possible buyer for the chain. Dollar Tree Inc. acquired Family Dollar in July 2015 for $8.5 billion, beating out rival bidder Dollar General.
See also:
- New president appointment at Family Dollar to oversee potential sale or spin-off
- Family Dollar on the block for 2nd time in 9 years