Dollar Tree Sells Family Dollar to Brigade Capital and Macellum Capital

07/07/2025 – 12:10 PM

CHESAPEAKE, Va.–(BUSINESS WIRE)–
Dollar Tree, Inc. (NASDAQ: DLTR) has officially completed the sale of its Family Dollar business segment. Sterling Capital Management, LP and Macellum Capital Management, LLC are the buyers, in a deal valued at an aggregate base purchase price of $1,007.5 million in cash, subject to customary adjustments. The company anticipates net proceeds nearing $800 million. This figure includes $665 million paid at closing and an additional $135 million from the monetization of pre-closing cash through a reduction in net working capital. Furthermore, Dollar Tree is projecting economic benefits from tax deductions related to losses on the sale to be approximately $375 million. These final figures are contingent upon adjustments expected within 90 days of the closing date.

“The completion of this transaction marks a defining moment for Dollar Tree,” stated Mike Creedon, Chief Executive Officer of Dollar Tree, Inc. “By honing our focus on our core business, we are doubling down on our strengths: delivering exceptional value, convenience, and discovery to our customers every single day. Now, more than ever, we are strategically positioned to accelerate our growth, drive innovation, and fully realize our potential as a leader in value retail.”

As a streamlined entity, Dollar Tree is set to pursue growth through strategic initiatives, including an expanded product assortment, new store openings, and efforts to attract a broader customer base. With a history spanning nearly 40 years, Dollar Tree has cultivated a robust retail footprint of over 9,000 stores, cementing its status as a formidable value retailer across North America.

In conjunction with the closing, Dollar Tree will implement a Transition Services Agreement (TSA). The company will be reimbursed for the costs associated with providing these services. Dollar Tree anticipates a corresponding decrease in selling, general, and administrative (SG&A) expenses, stemming from both the TSA reimbursement and reduced headcount costs due to employees transitioning to Family Dollar.

This transaction, initially announced on March 26, 2025, concludes Dollar Tree’s strategic review of the Family Dollar business, which commenced in June 2024.

J.P. Morgan Securities LLC provided financial advisory services, with Davis Polk & Wardwell LLP serving as legal counsel to Dollar Tree.

A REVIEW OF FORWARD-LOOKING STATEMENTS: This press release contains statements considered “forward-looking” under the Private Securities Litigation Reform Act of 1995. These statements address future events, developments, or results and are not exclusively based on historical facts. Any statements herein that are not historical facts may be considered forward-looking. Such statements often include terms like “believe,” “anticipate,” “expect,” “intend,” “plan,” “view,” “target,” or “estimate,” and similar expressions, and may also be identified by words such as “may,” “will,” “should,” “predict,” “possible,” “potential,” “continue,” “strategy,” and similar phrasing. For example, forward-looking statements include our plans and expectations for our business, including the impact of various initiatives, growth prospects, and other objectives. They also encompass statements regarding the sale of Family Dollar, including anticipated proceeds (subject to final adjustment) and related TSA matters. It is important to note that these transactions could disrupt business operations, prove more challenging or costly than anticipated, or fail to yield the expected benefits. These projections are subject to inherent risks and uncertainties. For a comprehensive understanding of the risks, uncertainties, and assumptions that could impact our future events, developments, or results, please refer to the “Risk Factors,” “Business,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within our Annual Report on Form 10-K filed on March 26, 2025, our most recent Quarterly Report on Form 10-Q, and other filings made with the Securities and Exchange Commission. Dollar Tree is not obligated to publicly update any forward-looking statements to reflect events or circumstances arising after the date of this release.

About Dollar Tree, Inc.

Dollar Tree, Inc. (NASDAQ: DLTR), headquartered in Chesapeake, VA, stands as one of North America’s largest and most cherished value retailers. Renowned for its commitment to delivering outstanding value, unparalleled convenience, and an engaging “thrill-of-the-hunt” shopping experience, Dollar Tree operates approximately 9,000 stores and 18 distribution centers across 48 contiguous states and five Canadian provinces. Supported by a dedicated team of roughly 150,000 associates, the company proudly serves customers under the Dollar Tree and Dollar Tree Canada brands. Dollar Tree is deeply committed to responsible business stewardship, prioritizing its people, serving its communities, and creating enduring value. More information about Dollar Tree can be found at www.DollarTree.com.

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Dollar Tree Sells Family Dollar to Brigade Capital and Macellum Capital