Dollar Tree to sell struggling Family Dollar for $1 billion

Dollar Tree is offloading its Family Dollar chain for about $1 billion to Brigade Capital Management and Macellum Capital Management a decade after buying the business.

The deal, which is expected to close next quarter, marks a disappointing end to Dollar Tree's bid to establish itself as a discount giant, with a price tag that's a steep discount to the nearly $9 billion it paid for Family Dollar. Dollar Tree's store count will roughly halve following the transaction.

The deal "closes the book on a sad and troubled chapter for Dollar Tree," Neil Saunders, MD at GlobalData, said in a research note. The company "has struggled for over a decade to make the business work".


Dollar Tree's shares were little changed at the open of US trading in New York. The stock had declined about 10% this year through Tuesday.

The company said that it would explore options for the troubled business, including a sale or spinoff.