Bidding Wars: Private Equity Titans Eye Family Dollar

Private equity firms Apollo Global Management, Sycamore Partners, and Brigade Capital Management are reportedly vying to acquire Family Dollar from Dollar Tree. Discussions remain confidential, and no deal is imminent. Family Dollar struggles with performance amid high inflation, seeking strategic solutions with JPMorgan Chase's assistance.

In the latest move within the retail sector, private equity heavyweights Apollo Global Management and Sycamore Partners have emerged as competitors in the race to acquire Family Dollar, a discount retail brand currently owned by Dollar Tree. Sources familiar with the deal confirmed the interest in acquiring the brand, though no agreement is on the table as conversations remain confidential.

Brigade Capital Management has also shown interest in the acquisition, but insiders caution that Dollar Tree might ultimately decide against selling. This exploration of options follows Dollar Tree's 2015 acquisition of Family Dollar for around $9 billion, a decision that's being reconsidered amid Family Dollar's recent performance struggles.

Family Dollar's growth has stagnated in contrast to larger retailers like Walmart and Target as consumer spending slumps with rising inflation. This has prompted Dollar Tree to work with JPMorgan Chase since last June on potential strategies including a sale or a spinoff. Meanwhile, investment firms continue to vie for Family Dollar, hoping to reinvigorate its position in the market.

(With inputs from agencies.)