Dollar Tree up on sale of Family Dollar banner for $1 billion

Shares of discount retailer Dollar Tree DLTR.O up ~7% at $71.51 premarket

*Co to sell its Family Dollar banner to a consortium of private-equity investors for about $1 billion

The discount-retail chain will be bought by Brigade Capital Management and Macellum Capital Management

In June last year, DLTR said it was exploring options for its Family Dollar business

The Wall Street Journal first reported on a possible deal earlier on Wednesday

Excluding sales from Family Dollar business, DLTR's fourth-quarter net sales of $5 billion came in marginally above sales of $4.96 billion reported a year ago

Up to last close, stock down about 10% YTD