Dollar Tree announced Wednesday that it will sell off the Family Dollar chain a decade after acquiring those stores.
The bargain retail chain announced that Brigade Capital Management and Macellum Capital Management would partner to acquire Family Dollar for roughly $1 billion. Dollar Tree originally completed its acquisition of Family Dollar in 2015 for $9 billion.
Despite this, Dollar Tree CEO Mike Creedon deemed the deal as a “major milestone” in his chain’s “multiyear transformation.”
“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,” Creedon said.
The deal is expected to close within the second quarter of 2025, subject to regulatory approval.
CONGRESS MUST RAISE DEBT CEILING BY AUGUST OR SEPTEMBER TO AVOID DEFAULT: CBO
Dollar Tree’s move to sell Family Dollar comes a few years after it raised prices on most of its products by 25%, making most of what it sells more than $1. Then-CEO Michael Witynski suggested in 2021 that it was the “appropriate time” to raise prices.
Last year, Dollar Tree announced that it would raise the price cap on its items to $7, citing an influx of wealthier shoppers.