Dollar Tree (NASDAQ: DLTR) to Divest Its Family Dollar Business

Dollar Tree, Inc. (NASDAQ: DLTR) today announced that the Company has reached an agreement under which Brigade Capital Management, LP (“Brigade”) and Macellum Capital Management, LLC (“Macellum”) will partner to acquire the Company’s Family Dollar business segment. Family Dollar will remain headquartered in Chesapeake, Virginia.

The purchase price for Family Dollar, under the terms of the agreement, is $1,007.0 million, subject to customary closing adjustments.

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 the United States, and transactions that advance our growth strategy.”

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.”