Dollar Tree completes sale of Family Dollar to Brigade, Macellum

Dollar Tree (DLTR) announced the completion of the previously announced sale of its Family Dollar business segment to Brigade Capital Management and Macellum Capital Management for an aggregate base purchase price of $1,007.5M in cash, subject to certain adjustments. Net proceeds from the sale are estimated to total approximately $800M comprised of $665M paid at closing and approximately $135M as a result of the monetization of cash prior to closing through a reduction of net working capital. The Company now expects the economic impact of tax benefits from losses on the sale to be approximately $375M. These amounts are subject to final adjustment approximately 90 days after the closing date. As previously disclosed, with the closing of this transaction, Dollar Tree will begin a Transition Services Agreement. The Company will be reimbursed for the cost of providing these services. The company expects an offsetting reduction to SG&A, resulting from a combination of this reimbursement of TSA expenses and a reduction in headcount expenses because of employees who will now be employed by Family Dollar. The transaction was announced on March 26, 2025, and concludes Dollar Tree’s review of strategic alternatives for the Family Dollar business segment, which began in June 2024.