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David Paul Morris / Bloomberg via Getty Images Dollar Tree (DLTR) on Wednesday said it has reached a deal to sell its Family Dollar brand to a pair of private-equity firms for $1 billion.

The combined company hoped that by joining forces it could grow its customer base, reduce costs and fend off Dollar General, which is located primarily in rural areas. Dollar General had also bid ...

The sale comes a decade after the company bought the smaller chain for $8 billion in 2015, beating out Dollar General for the deal, but ultimately losing ground against its now-larger rival.

Dollar Tree is selling Family Dollar to a pair of private equity firms for $1 billion after a decade of trying to make its acquisition of the bargain chain fit. Dollar Tree Inc. acquired Family ...

when it outbid Dollar General for the brand. A Family Dollar store in Fairfield, California, is seen on March 13, 2024. (Justin Sullivan/Getty Images / Getty Images) Dollar Tree CEO Mike Creedon ...