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Dollar Tree agreed to sell Family Dollar to asset managers Brigade Capital Management and Macellum Capital Management for $1 billion, the company announced Wednesday morning.

Why it matters: It’s a fraction of the $9 billion that Dollar Tree paid to acquire Family Dollar in 2015.

Zoom in: The transaction, which is expected to close in Q2, follows a strategic review announced last year.

• Duncan MacNaughton, former president and COO of Family Dollar, will become chairman.
• Wells Fargo, RBC Capital Markets and WhiteHawk Capital Partners will provide financing.

What they’re saying: “This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Dollar Tree CEO Mike Creedon, adding that the discounter will continue to expand the number of Dollar Tree locations.

The bottom line: The struggle of dollar stores speaks to the growing power of Walmart.