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Months after first announcing the deal, Dollar Tree has completed its sale of Family Dollar to Brigade Capital Management and Macellum Capital Management for just over $1 billion.
With amounts subject to final adjustments about 90 days after closing, the sale’s net proceeds are estimated at about $800 million, per a company press release Monday. Dollar Tree anticipates the economic impact of tax benefits from losses to be around $375 million. The completed sale marks a notable loss from when Dollar Tree acquired Family Dollar for $8.5 billion over a decade ago.
“The completion of this transaction marks a defining moment for Dollar Tree,” Dollar Tree CEO Mike Creedon said in a statement. “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.”
Family Dollar will now operate as a private retailer after more than a decade operating within the publicly-traded Dollar Tree company. Under its new ownership, Family Dollar sees an opportunity to return to its roots, according to a statement from Chairman and CEO Duncan MacNaughton. The company’s new owners are focused on improving the business overall, which will remain headquartered in Chesapeake, Virginia, per a separate press release.
Dollar Tree won a bid for Family Dollar in 2014, beating out a higher offer from competitor Dollar General due to antitrust concerns.
Family Dollar has since been a weight on Dollar Tree’s overall performance, with Dollar Tree publicly considering the sale of the banner since June 2024. Earlier that year, Dollar Tree announced it would close almost 1,000 Family Dollar stores in a larger turnaround effort.
Without the impact of Family Dollar on the larger business, Dollar Tree first quarter net sales announced in June grew 11.3% year over year to $4.6 billion, with comps increasing 5.4% and traffic rising 2.5%.