Research Alert: Dltr To Sell Family Dollar For $1b After Acquiring It For $9b In 2015

09:55 AM EDT, 03/26/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Dollar Tree Inc. ( DLTR ) announced the sale of its Family Dollar banner to private equity firms Brigade and Macellum for $1.01B, with expected net proceeds of $804M and tax benefits of $350M. The sale represents a significant loss on DLTR's original $9B acquisition in 2015, with the company now recognizing a $3.4B unrealized loss from reclassifying the business as discontinued operations. Family Dollar has consistently underperformed, with gross margins lagging Dollar Tree's ( DLTR ) by roughly 1,000 bps, despite having much higher price points. The deal, expected to close in 90 days, follows years of execution challenges across merchandising, pricing, and supply chain functions. We believe the sale is the right strategic move, as it will allow DLTR to focus on its core Dollar Tree brand, which has historically generated stronger sales, profitability, and cash flow. However, we note increased exposure to tariff risks as Dollar Tree ( DLTR ) has a higher concentration in general merchandise categories than Family Dollar.

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