Dollar Tree vet will operate newly acquired Family Dollar stores
CHESAPEAKE, Va. — Dollar Tree announced Monday that it has completed its $9.2 billion acquisition of Family Dollar Stores. Gary Philbin, 58, has been named president and COO of Family Dollar, effective immediately. In his new role, Philbin will continue to report to Bob Sasser, Dollar Tree CEO. Philbin joined Dollar Tree as SVP stores in December 2001, and was later promoted to COO in March 2007 and to President in June 2013. Prior to joining Dollar Tree, Philbin held senior-level positions in both merchandising and operations during his thirty years in the retail grocery industry.
"We are pleased to announce we have completed our acquisition of Family Dollar and we formally welcome the Family Dollar team to the Dollar Tree organization," stated Bob Sasser, CEO. "[And] I am very proud to announce that Gary will be taking on his new leadership role of Family Dollar Stores," Sasser said. "Gary has played an integral role in the success of Dollar Tree over the past 14 years. Notably, Gary was instrumental in improving the Dollar Tree customer shopping experience and the related customer satisfaction, as well as leading the integration following our Canadian acquisition in 2010."
Additionally, the company announced that Howard Levine, CEO Family Dollar, has been appointed to Dollar Tree's board of directors, effective immediately.
The combined organization will operate more than 13,000 stores in 48 states and five Canadian provinces, with sales exceeding $19 billion annually.
According to the company, Dollar Tree is the nation's leading operator of fixed-price point stores, selling everything for $1 or less, and Family Dollar is a leading national operator of multi-price point stores providing value-conscious consumers with a selection of competitively priced merchandise in convenient neighborhood stores. The combined company intends to retain and to grow both banners going forward and will optimize the combined real estate portfolio.
J.P. Morgan Securities acted as exclusive financial advisor to the board of directors of Dollar Tree, and J.P. Morgan Chase Bank committed to provide bridge financing for the transaction. Wachtell, Lipton, Rosen & Katz and Williams Mullen acted as legal counsel to Dollar Tree in connection with the transaction. Morgan Stanley & Co. acted as exclusive financial advisor to the board of directors of Family Dollar in connection with the transaction. Cleary Gottlieb Steen & Hamilton acted as legal counsel to Family Dollar in connection with the transaction.