Dollar Tree announced on Wednesday that it has agreed to sell its Family Dollar division to a group of private equity firms in a deal valued at approximately $1 billion.

Dollar Tree purchased Family Dollar in 2015 for about $9 billion, hoping the merger would help both stores reach more customers. But it struggled to effectively manage the Family Dollar brand.

Family Dollar Store Closures. There are around 8,000 Family Dollar locations across the U.S., but the chain has struggled amid ambitious expansion plans and Dollar Tree had already announced in ...