Dollar Tree is expected to announce a deal later today in which a consortium of private equity investors will acquire its Family Dollar business for about $1 billion—a steep drop from the $8.5 billion the discount retail chain paid for it in 2015. 

The Wall Street Journal cited sources close to the deal, who said Brigade Capital Management and Macellum Capital Management would purchase Family Dollar for around $1 billion. The announcement is planned around Dollar Tree's quarterly results on Wednesday morning.