Portfolio

Family Dollar Stores, Inc. (2010-2015)

Family Dollar Stores, Inc. (“Family Dollar”) is a U.S. retail variety store chain. Family Dollar merged with Dollar Tree in 2015.

Trian announced its investment in Family Dollar in July 2010. Trian was attracted to what it believed was an undervalued company that generated strong free cash flow with an investment grade balance sheet. Trian sought to enhance Family Dollar’s operations and optimize its balance sheet by implementing new initiatives to increase earnings, including increasing sales per square foot through improvements of store standards and enhancements in product and category management, focusing on cost management, and an optimization of the company’s capital structure and capital allocation.

In September 2011, Ed Garden joined Family Dollar’s board. Subsequently, the company began taking steps consistent with Trian’s operational and strategic initiatives. In April 2013, Trian encouraged the company to consider strategic options, and a special committee of the board was formed that included Ed Garden. Mr. Garden helped to lead the board effort to sell Family Dollar to Dollar Tree for $76.85 per share. During Trian’s investment in Family Dollar, the company increased store openings and renovations substantially, repurchased approximately $1.1 billion of its common stock over FY11-FY14, and grew earnings significantly.

Trian sold its investment in Family Dollar in 2015.

Sector: Consumer

Company Website: http://www.familydollar.com/