We are advising Dollar Tree on the transaction

Davis Polk is advising Dollar Tree, Inc. on the $1 billion divestiture of its Family Dollar business segment to Brigade Capital Management, LP and Macellum Capital Management, LLC. The transaction is anticipated to close later in the second quarter of 2025, subject to standard closing conditions and regulatory approvals.

Dollar Tree is one of the nation’s leading value retailers, operating more than 8,000 stores and 25 distribution centers across the 48 contiguous U.S. states and five Canadian provinces. Stores operate under the brands of Dollar Tree, Family Dollar and Dollar Tree Canada. Family Dollar, a subsidiary of Dollar Tree, is a discount retailer offering a wide variety of household essentials, groceries and other items at affordable prices.

Brigade Capital Management is a global asset management firm founded in 2006 with over $27 billion in assets under management. Founded by Donald E. Morgan III, CIO and Managing Partner, the firm is headquartered in New York with a global footprint that includes an office in London.

Macellum Capital Management is an investment firm founded in 2009 that invests in undervalued companies that it believes can appreciate significantly in value through changes in strategy, capital allocation and improvements in operations. The firm has substantial experience investing in consumer and retail companies.

The Davis Polk corporate team includes special counsel George R. Bason Jr., partner James P. Dougherty and counsel Dmitriy Molchanov. Partner William A. Curran is providing tax advice. Partner Pritesh P. Shah is providing intellectual property advice. Partner Veronica M. Wissel is providing executive compensation advice. Partner Robert F. Smith is providing sponsor finance advice. Partner Daniel S. Kahn is providing litigation advice. Partner Adam L. Shpeen is providing restructuring advice. Members of the Davis Polk team are based in the New York and Washington DC offices. 

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