Dollar Tree Reaches Deal To Sell Family Dollar

Over the past few months, Family Dollar locations have been closing due to underperformance.

Dollar Tree announced plans to sell Family Dollar.

The company acquired the chain in 2014 for just over $9 billion.

Over the past few months, Family Dollar locations have been closing due to underperformance.

Now, shares of the company surged around 7% in pre-market trading after the discount retailer reached a deal with a pair of private-equity firms for $1 billion.

Brigade Capital Management and Macellum Capital Management are now set to take control over Family Dollar.

The deal is expected to generate just over $800 million in net proceeds.