Dollar Tree sees net proceeds of ~$804M from sale of Family Dollar business

After a thorough review of strategic alternatives, on March 25, the company entered into a definitive agreement to sell the Family Dollar business to Brigade and Macellum for a purchase consideration of $1.007B, subject to a number of adjustments, including with respect to working capital and net indebtedness. The closing of the transaction is subject to satisfaction of customary closing conditions, including receipt of US antitrust approval. Net proceeds are estimated to total approximately $804M. Additionally, the company expects the economic impact of tax benefits from losses on the sale to be approximately $350M. The deal is expected to close in approximately 90 days with the Family Dollar business remaining headquartered in Chesapeake, Virginia.