Dollar Tree Announces Agreement to Divest Its Family Dollar Business to Brigade Capital Management and Macellum Capital Management : Dollar Tree, Inc. (DLTR)

Greenback Tree Declares Settlement to Divest Its Household Greenback Enterprise to Brigade Capital Administration and Macellum Capital Administration

• Transaction completes beforehand introduced assessment of Strategic Alternate options for Household Greenback Enterprise

CHESAPEAKE, Va.–(BUSINESS WIRE)–
Greenback Tree, Inc. (NASDAQ: DLTR) right now introduced that the Firm has reached an settlement underneath which Brigade Capital Administration, LP (“Brigade”) and Macellum Capital Administration, LLC (“Macellum”) will companion to amass the Firm’s Household Greenback enterprise phase. Household Greenback will stay headquartered in Chesapeake, Virginia.

The acquisition worth for Household Greenback, underneath the phrases of the settlement, is $1,007.0 million, topic to customary closing changes.

After a radical assessment of potential options for the Household Greenback enterprise phase, the Greenback Tree management workforce and Board of Administrators decided {that a} sale of Household Greenback to Brigade and Macellum finest unlocks worth for Greenback Tree shareholders and positions Household Greenback for future success.

“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” stated Mike Creedon, Chief Government Officer, Greenback Tree, Inc. “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.”

Mr. Creedon continued, “Under the experienced, dynamic leadership of Family Dollar President Jason Nordin, and with the financial support of Brigade and Macellum, Family Dollar will be well-positioned for growth as a private company. With the support of a dedicated team, Family Dollar will be able to strengthen its commitment to providing affordable and essential goods to customers so they can do more with less.”

Matt Perkal, Companion at Brigade, stated, “Since 1959, Family Dollar has served its customers by offering convenient, high-quality products at a great value and the business is a pillar in communities across the United States. We look forward to continuing and enhancing Family Dollar as its own enterprise, which we are confident will drive greater success for the business and value for all of Family Dollar’s stakeholders, including employees, customers, and communities.”

“This transaction presented a unique opportunity to play a key role in reinvigorating an iconic business. Throughout this process we have met an exceptional group of executives that are dedicated to the Company and its customers. We look forward to executing the strategic plan we have developed together,” added Jonathan Duskin, CEO and Companion of Macellum. “In particular, we are excited that Duncan MacNaughton will be joining the company as Chairman, where his insights as a former President and Chief Operating Officer of the company, and broader industry experience, will be invaluable.”

Duncan MacNaughton added, “I am excited to collaborate with the Family Dollar team and our incredibly capable and supportive new investors to drive the business forward in this next chapter of its evolution. Family Dollar has a tremendous potential to grow and succeed as an independent company, and I am honored to be able to play a role in helping the company fully realize that opportunity.”

Transaction Timing and Particulars

The transaction is anticipated to shut later within the second quarter of 2025, topic to plain closing situations and regulatory approvals.

J.P. Morgan Securities LLC is serving as monetary advisor and Davis Polk & Wardwell LLP is serving as authorized advisor to Greenback Tree.

Jefferies LLC is serving as lead monetary advisor to Brigade and Macellum, and RBC Capital Markets can be serving as monetary advisor in reference to the acquisition of Household Greenback. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as authorized advisor in reference to the transaction. Wells Fargo, RBC Capital Markets, and WhiteHawk Capital Companions are offering financing for the transaction.

About Greenback Tree, Inc.

Greenback Tree, a Fortune 200 Firm, operated 16,500 shops throughout 48 states and 5 Canadian provinces as of February 1, 2025. Shops function underneath the manufacturers of Greenback Tree, Household Greenback, and Greenback Tree Canada. To be taught extra in regards to the Firm, go to www.DollarTree.com.

About Brigade Capital Administration

Brigade Capital Administration is a world asset administration agency based in 2006 with over $27 billion in property underneath administration. Brigade invests throughout private and non-private markets utilizing a bottoms-up funding philosophy throughout quite a lot of diversified funds. As an SEC registered funding advisor, Brigade is a number one unbiased different asset supervisor with a 48-person funding workforce. Based by Donald E. Morgan III, CIO and Managing Companion, the agency is headquartered in New York with a world footprint that features an workplace in London.

About Macellum Capital Administration

Macellum Capital Administration is an funding agency based in 2009 that invests in undervalued corporations that it believes can admire considerably in worth by means of adjustments in technique, capital allocation and enhancements in operations. The agency has substantial expertise investing in shopper and retail corporations. Macellum’s funding workforce and advisors work collaboratively with corporations and draw upon their in depth strategic and working expertise to help corporations in designing and implementing initiatives to enhance long-term efficiency.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: This communication comprises “forward-looking statements” inside the that means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Trade Act of 1934. Ahead-looking statements could be recognized by the truth that they deal with future occasions, developments or outcomes and don’t relate strictly to historic details. Any statements contained on this communication that aren’t statements of historic truth could also be deemed to be forward-looking statements. Ahead-looking statements embrace, with out limitation, statements preceded by, adopted by or together with phrases reminiscent of: “anticipate,” “appear,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “seek,” “should,” “strategy,” “will,” “can,” “could,” “predict,” “possible,” “future,” “potential,” “look,” “build,” “focus,” “create,” “work,” “continue,” “target,” “poised,” “advance,” “drive,” “aim,” “approach,” “seek,” “schedule,” “position,” “pursue,” “progress,” “budget,” “outlook,” “trend,” “guidance,” “commit,” “on track,” “objective,” “goal,” “opportunity,” “ambitions,” “view”, “aspire” and variations of negatives of such phrases and variations thereof. Different phrases and phrases of comparable that means or import in reference to any dialogue of future plans, actions, occasions or working, monetary or different efficiency determine forward-looking statements. These statements are topic to dangers and uncertainties. Particularly, our forward-looking statements embrace statements concerning our pending sale of Household Greenback, which is topic to closing situations and quite a few changes to the acquisition worth, and which will not be accomplished in a well timed trend or in any respect, disrupt our enterprise operations, be harder or expensive than anticipated or fail to attain the anticipated advantages. For a dialogue of the dangers, uncertainties and assumptions that might have an effect on our future occasions, developments or outcomes, it is best to fastidiously assessment the “Risk Factors,” “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Type 10-Okay filed March 20, 2024 and different filings we make every now and then with the Securities and Trade Fee. Any forward-looking statements communicate solely as of the date the assertion is made and we’re not obligated to launch publicly any revisions to any forward-looking statements contained on this press launch to mirror occasions or circumstances occurring after the date of this report and you shouldn’t anticipate us to take action. It isn’t attainable to determine the entire dangers, uncertainties and different elements that will have an effect on future outcomes. In gentle of those dangers and uncertainties, the forward-looking occasions and circumstances mentioned herein might not happen and precise outcomes might differ materially from these anticipated or implied within the forward-looking statements. Accordingly, readers are cautioned to not place undue reliance on any forward-looking statements.

View supply model on businesswire.com:

Buyers:

Robert A. LaFleur

SVP, Investor Relations

[email protected]

Media:

Kate Kirkpatrick

VP, Communications

[email protected]

For Brigade and Macellum:

Josh Clarkson, Anne Hart

[email protected]

Supply: Greenback Tree, Inc.

Launched March 26, 2025