Dollar Tree Set To Offload Family Dollar Business For $1 Billion
Dollar Tree is expected to announce a deal later today in which a consortium of private equity investors will acquire its Family Dollar business for about $1 billion—a steep drop from the $8.5 billion the discount retail chain paid for it in 2015.
I love it when real life offers a real-time example of the true subjectivity in Time Value of Money… https://t.co/Si9Otj84I6
— Peter Atwater (@Peter_Atwater) March 26, 2025
The Wall Street Journal cited sources close to the deal, who said Brigade Capital Management and Macellum Capital Management would purchase Family Dollar for around $1 billion. The announcement is planned around Dollar Tree’s quarterly results on Wednesday morning.
Dollar Tree purchased Family Dollar in 2015 for about $8.5 billion, beating Dollar General in a bidding war. The deal combined two of the biggest discount retailers, yet the acquisition was nothing more than a bust. Family Dollar has been the weaker performer, and Dollar Tree has closed or rebranded many of those stores in recent years.
More color on Family Dollar via WSJ:
Though the two names sound familiar and are known for selling cut-rate merchandise, they serve different consumers. Dollar Tree stores are mostly in suburban locations and cater to middle-income households seeking party supplies, crafts or other knickknacks. (Dollar Tree historically sold most items at $1, though recently it has boosted some prices.) Family Dollar locations are more concentrated in urban areas, and sell groceries, cleaning products and other essential items at various price points.
…
Since the deal, the Family Dollar business has struggled to grow and been a heavy investment lift. Dollar Tree had already started down the path of slimming it down. In early 2024, it said it would close roughly 1,000 Family Dollar locations as the business battled inflation and store theft, among other industry challenges.
Wall Street analysts have noted that selling Family Dollar should allow Dollar Tree to invest more aggressively in growth—and, hopefully, make smarter bets. One such bet is its recent acquisition of leases from a group of 99 Cents Only Stores.
In markets, Dollar Tree shares were up 6.5%. Shares are down 10.5% on the year (as of Tuesday’s close) and remain at Covid lows amid value wars that Goldman crowned Walmart as king.
The question now is whether the consortium of private equity investors will rebrand the “Family Dollar” name to reflect the inflation surge under the previous administration that sent prices soaring.
Tyler Durden Wed, 03/26/2025 – 07:20
Source: https://freedombunker.com/2025/03/26/dollar-tree-set-to-offload-family-dollar-business-for-1-billion/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
