(Reuters) – Dollar Tree is nearing a sale of its Family Dollar business to a consortium of private-equity investors for about $1 billion, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The discount-retail chain is set to be bought by Brigade Capital Management and Macellum Capital Management, according to the report.
Dollar Tree’s shares were up 2.8% in premarket trading.
The company is in the middle of a restructuring as it struggles with competition from big-box retailers such as Walmart, as well as online retailers including Amazon, Shein and Temu.
In June last year, Dollar Tree said it was exploring options for its Family Dollar business, which it bought in 2015 for about $9 billion outbidding rival Dollar General.
Reuters reported in February that private equity firms including Brigade Capital had expressed interest in buying Family Dollar.
Dollar Tree did not immediately respond to a Reuters request for comment.
A deal is expected to be announced later on Wednesday morning, when Dollar Tree reports its quarterly results, the Journal reported.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shounak Dasgupta)
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