The discount retail chain is selling the Family Dollar business for $1 billion, after buying it for $8.5 billion in 2015.

Dollar Tree on Wednesday said it has reached a deal to sell its Family Dollar brand to a pair of private-equity firms for $1 billion.

Key Takeaways Dollar Tree shares rallied 10% Thursday as analysts cheered the retailer's plan to sell the Family Dollar brand.UBS Securities analysts said the deal "will make the investment case on ...