Dollar Tree Inc. (NASDAQ: DLTR) announced the $1 billion sale of its Family Dollar business to the private equity firms Brigade Capital Management LP and Macellum Capital Management LLC.
Dollar Tree acquired Family Dollar for more than $8 billion in 2015. However, the company has recently experienced financial challenges, announcing last year that it was closing 1,000 stores under both the Dollar Tree and Family Dollar brands.
There are currently about 7,625 Family Dollar stores across the country. Dollar Tree announced Family Dollar will remain headquartered in Chesapeake, Virginia, with Jason Nordin remaining as its president.
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon, CEO of Dollar Tree. “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.”
Matt Perkal, partner at Brigade, added, “Since 1959, Family Dollar has served its customers by offering convenient, high-quality products at a great value and the business is a pillar in communities across the United States. We look forward to continuing and enhancing Family Dollar as its own enterprise, which we are confident will drive greater success for the business and value for all of Family Dollar’s stakeholders, including employees, customers, and communities.”
Photo: JJBers / Wikimedia Commons
