Dollar Tree selling Family Dollar to a pair of private equity firms for $1 billion

Dollar Tree is selling Family Dollar to a pair of private equity firms for $1 billion after unsuccessfully trying to incorporate the bargain chain for a decade.

Dollar Tree Inc. had been scouting options for Family Dollar for a while and it said Wednesday that the sale to Brigade Capital Management and Macellum Capital Management will allow it to focus on its core business.

“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” CEO Mike Creedon said in a prepared statement.

Family Dollar will keep its headquarters in Chesapeake, Virginia.

The deal is expected to close later in the second quarter.