Dollar Tree Stock Rises on $1B Family Dollar Sale to Private-Equity Firms

Aaron McDade

Wed, Mar 26, 2025, 3:54 AM 1 min read

Shares of Dollar Tree (DLTR) surged nearly 7% in premarket trading Wednesday after the discount retailer reached a deal to sell its Family Dollar brand to a pair of private-equity firms for $1 billion.

Dollar Tree said it will sell Family Dollar to Brigade Capital Management and Macellum Capital Management, with the deal "anticipated to close later in the second quarter," it said. In its quarterly earnings report also released Wednesday morning, Dollar Tree estimated the deal would generate just over $800 million in net proceeds.

Dollar Tree acquired Family Dollar in 2014 for just over $9 billion. Last March, Dollar Tree announced plans to close roughly 1,000 underperforming stores, and in June said it was launching a review of whether it should sell or spin off the Family Dollar brand.

Excluding Family Dollar's results, the discount retailer reported adjusted earnings per share (EPS) of $2.11 on revenue of $5.0 billion, while same-store sales rose by 2%.

For 2025, Dollar Tree expects sales of $18.5 billion to $19.1 billion, with same-store sales growth of 3% to 5% and adjusted EPS of $5.00 to $5.50.

Dollar Tree shares entered the day down roughly 47% over the last 12 months.

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