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byline: Robyn Sidersky

UNOS CEO announces departure

Richmond-based UNOS, the United Network for Organ Sharing, will begin seeking a new chief executive at the end of September, the nonprofit announced Tuesday.

CEO Brian Shepard will leave after nearly a decade with the UNOS, which administers the nation’s organ procurement and transplantation network. UNOS’s chief operating officer, Maureen McBride, will serve as interim CEO beginning Oct. 1 while UNOS conducts a national search for Shepard’s successor.

Shepard joined UNOS in 2010 and became CEO in 2013, having served as acting CEO since late 2012. Before that, Shepard worked in high-level positions in Virginia state government, including as director of policy in Gov. Tim Kaine’s administration. The Virginia native holds a history degree from Virginia Tech and an MBA from the University of Virginia.

McBride has been with the group since 1995 and served as director of research until 2014, when she became chief operating officer.

UNOS has a big year in 2021, conducting more than 41,000 transplants, setting a global record. It broke the record set in 2020, when it performed more than 33,000 live-saving transplants.

“As UNOS CEO, Brian was a constant and courageous advocate for increasing equity in our national donation and transplantation system,” Jerry McCauley, incoming president of the UNOS board of directors, said in a statement. “His leadership has resulted in marked improvements in access to transplant for patients of color and those who have been historically marginalized. I am proud to have worked alongside Brian as a member of the UNOS board and am excited to build upon the foundation he has laid to further advance our mission and save even more lives.”

Leidos withstands GDIT’s protest over $11.5B contract

The U.S. Government Accountability Office issued a decision earlier this month denying a protest filed by Falls Church-based General Dynamics Information Technology Inc. over an $11.5 billion defense contract won by another Fortune 500 contractor, Reston-based Leidos Inc.

The Defense Information Systems Agency for Defense Enclave Services awarded Leidos the single-award, indefinite-delivery, indefinite-quantity contract with a four-year base period followed by three two-year option periods in February, the largest contract in the company’s history. Leidos will consolidate enterprise IT services for more than 370,000 users spanning 22 Department of Defense agencies and field activities with more than 500 sites in the U.S. and abroad.

GDIT, which had competed for the contract, protested the decision on March 10, and the GAO issued its denial June 15. On Monday the body posted a more detailed explanation of the protest and denial.

Among the challenges raised by GDIT were that the DISA failed to consider benefits of GDIT’s proposal and overlooked its strengths, and that because the contract did not detail staffing levels, Leidos’ approach cost less than GDIT’s estimate. GDIT also claimed that the agency’s questioning of the company over its proposal was not conducted fairly. Seven contractors submitted proposals, and Leidos and GDIT were the two finalists.

This month’s decision does not necessarily bring an end to the matter; GDIT could choose to file the case with the U.S. Court of Federal Claims.

GDIT’s protest raised a variety of challenges of the agency’s evaluation of proposals, conduct of discussions and resulting source selection decision.

The company did not return a request for comment.

Once the protest was filed, GAO had 100 days to issue a decision, and in this case, did so after about 95 days, which is not unusual for one this large. Last year, GAO reviewed between 1,800 and 2,000 protests, and the U.S. Court of Federal Claims sees about 130 of these kinds of cases each year.

“We are pleased the Government Accountability Office has affirmed the Defense Information Systems Agency’s award,” Leidos Defense Group President Gerry Fasano said in a statement. “Leidos is deeply committed to DISA’s critical mission, and never stopped preparing for the program’s success. Our robust and continuous preparation has positioned us to start delivering benefits to the user base on or ahead of the current planned schedule, and we look forward to leveraging our decades of technological expertise to support mission success.”

Dollar Tree overhauls C-suite

Chesapeake-based Fortune 500 discount retailer Dollar Tree is overhauling much of its C-suite leadership, the company announced Tuesday.

Dollar Tree Stores Inc., which also owns the Family Dollar chain, is seeking permanent replacements for its chief operating officer, chief strategy officer, chief financial officer, chief information officer and chief legal officer.

Dollar Tree CFO Kevin Wampler will transition out of his role when a successor is named and will stay with Dollar Tree as an adviser until April 2023. “Mr. Wampler’s transition is not due to any disagreement with the company on any matter relating to the company’s financial reporting, policies or practices,” Dollar Tree stated in a June 28 filing with the Securities and Exchange Commission.

Chief Legal Officer and Corporate Secretary William Old, COO Thomas O’Boyle, Chief Strategy Officer David Jacobs and CIO Andy Paisley are no longer with the company, according to a news release from Dollar Tree. “The four departing executives will each receive a severance of continued base salary for 24 months and certain other benefits in accordance with the terms of their existing executive agreements. Long-term incentive awards will be governed by the terms of the existing plans and award agreements,” Dollar Tree said in the SEC filing.

Dollar Tree has already named interim leaders who will assume the responsibilities for the vacant posts and the company said it is in “advanced discussions with several candidates for certain positions.” Dollar Tree President and CEO Michael Witynski will serve as interim chief operating officer, according to the filing.

“As we look to the future, I believe these changes within our leadership team will bring new perspectives and experiences that will help accelerate our continued growth and deliver even greater value for our shareholders, customers, employees and suppliers,” Witynski said in a statement. “I want to thank Kevin, Will, Tom, David and Andy for their many years of dedicated service to the company and for enabling us to get to this point. We wish each of them the best in their future endeavors.”

Dollar Tree Board Chairman Rick Dreiling backed the decisions. “Our board is fully aligned with Mike that now is the right time to bring in new leadership to ensure the company remains on a strong trajectory,” he said in a statement.

In a statement to its investors, Wells Fargo analysts said, “While this looks like a lot of change on the surface, it was needed in our view and we support management’s decision to rip the band-aid off and expedite the turnaround. Overall this looks like a positive for the transformation narrative,” Wells Fargo analysts wrote.

In December 2021, activist investment firm Mantle Ridge, which owns a $1.8 billion stake in Dollar Tree, sought to overhaul Dollar Tree’s board and hire the former CEO of rival retailer Dollar General Corp., Reuters reported. Dreiling, Dollar Tree’s chairman, was CEO of Dollar General from 2008 until his retirement in June 2015, and served as Dollar General’s chairman until 2016. 

In March, Dollar Tree named Dreiling as executive chair and made Mantle Ridge’s founder and CEO Paul Hilal vice chair, along with appointing five new directors and five continuing directors. The board also added a new finance committee and restructured its nominating, governance, sustainability and compensation committees to create a new, separate committee focused on sustainability and corporate social responsibility. 

Mantle Ridge declined to comment for this story.

“It looks like they are trying to bring in a whole different perspective to sort of turn around Dollar Tree,” Reuben Gregg Brewer, a contributing analyst with Motley Fool, said. “There’s something going on here, and I can see why an outside investor would come in and say, ‘Maybe you guys need to do something different.’

“When you take out a number of important people all at once, it creates uncertainty. It creates chaos, usually. This is really rocking the boat. It’s big,” he said.

In May, Dollar Tree poached two former Dollar General executives, hiring John Flanigan as chief supply chain officer and Larry Gatt as chief merchandising officer.

At the end of 2021, Dollar Tree hiked prices to $1.25 at its stores nationwide for the first time, saying the stores would only sell discontinued products at the $1 price point. The company has more than 15,900 stores across the U.S.  and more than 193,000 employees.

In the first quarter of the year, Dollar Tree’s gross profit increased 19.2% to $2.34 billion, up from $1.96 billion during the same  period last year. Net income increased 43.2% in the first quarter to $536.4 million. Consolidated net sales increased 6.5% to $6.9 billion. For the second quarter, the company estimates net sales to range from $6.65 billion to $6.78 billion, it said in its first quarter earnings statement posted at the end of May.

“If I were thinking about making a massive change, I would probably want to do it in some sort of a staged fashion,” Brewer said. “If you swept out the entire leadership team … can you imagine the tumult that would cause for the company?

“This is a big change and it may not be the last change.”

EAB to expand, add 200 jobs in Henrico County

EAB, a direct marketing and recruitment firm for higher education institutions, expects to add at least 200 jobs with a $6 million expansion in Henrico County, Gov. Glenn Youngkin announced Tuesday.

The firm, formerly Royall & Co., will relocate from two locations on East Parham Road and consolidate its Henrico operations into a 70,000-square-foot space at the SunTrust building on West Broad Street.

“EAB has been a committed business partner in Virginia for more than 30 years, and we are thrilled to see its continued expansion and investment in Henrico County,” Youngkin said in a statement.” The firm’s success reinforces the importance of attracting and retaining a skilled workforce that is helping fulfill EAB’s mission to improve education and communities across the country.”

EAB was founded by the late Bill Royall, a Richmonder known for his philanthropy who sold the business for $850 million in 2014. It has 500 employees in Virginia and 1,500 nationwide. The company’s second-largest location is in Henrico.

“EAB is deeply committed to the Richmond area, and we believe our long-term investment will serve Henrico County, the Greater Richmond community, and our growing employee base for many years to come,” Chris Marett, EAB’s president of marketing and enrollment solutions, said in a statement. “We are proud to have been recognized as one of the top workplaces in Richmond for each of the past six years, and providing a more flexible, hybrid workspace will strengthen our ability to attract and retain the local talent we need to continue helping our partner institutions meet the complex challenges facing the education sector.”

The Virginia Economic Development Partnership worked with the Henrico Economic Development Authority and the Greater Richmond Partnership to secure the project for Virginia. The commonwealth competed against EAB locations nationwide. Youngkin approved a $741,600 grant from the Commonwealth’s Opportunity Fund to assist Henrico with the project. Funding and services to support the company’s employee training activities will be provided through VEDP’s Virginia Jobs Investment Program.

Williamsburg apartments sell for $100M

Alexandria-based real estate company Bonaventure has sold The Bend Arbordale apartments in Williamsburg for $100 million.

Bonaventure sold the 289-unit apartment complex to Illinois-based The Inland Real Estate Group, Bonventure announced Friday. Located at 401 Bulifants Blvd., the community has two- and three-bedroom apartments with private balconies or patios. It has a swimming pool, fitness center, business center, clubhouse and dog park. The community is near Sentara Williamsburg Regional Medical Center.

Drew White and Carter Wood, both of Berkadia, facilitated the sale for Bonaventure.

Valiant awarded $255M Air Force contract

Valiant Integrated Services LLC, a Herndon-based government contractor, has been awarded a 10-year, $255 million contract by the U.S. Air Force to provide F-16 international aircraft maintenance and pilot training to U.S. partner nation air forces, the company announced Thursday.

The indefinite-delivery/indefinite-quantity contract consists of 100% foreign military sales and enables the company to provide services at American and international locations.

“It’s an honor to be selected to support the U.S. Air Force through the delivery of diverse pilot training and aircraft maintenance services to partner countries who have never flown the F-16, new F-16 pilots, and countries purchasing new or upgraded aircraft,” Ashlee Dominguez, vice president, advanced training solutions at Valiant, said in a statement. “Our position on this contract provides the Air Force full access to Valiant’s innovative training and maintenance solutions, and we look forward to a long and productive partnership.”

Valiant employs approximately 5,000 people across more than 120 project sites and provides support services to the U.S. government, its allied partners and international organizations. The company provides services including logistics and sustainment; training, simulation and readiness; mission and contingency operations; engineering and analysis as well as maintenance and management for aerospace, defense, national security and intelligence government customers.

In October 2021, the company appointed three new executives.

Roanoke business center sells for $6.8M

Century Business Center in Roanoke has sold for $6.8 million, Cushman & Wakefield | Thalhimer announced this week.

ABMAR Century Business Center LLC, a regional investment group purchased the 52,306-square-foot multitenant flex-office building from Planta LLC. The property was 92% leased at the time of the sale.

Price Gutshall and Wyatt Poats of Cushman & Wakefield | Thalhimer handled the sale negotiations for the seller.

 

 

Sentara taps new president and CEO

Sentara Healthcare has named Dennis Matheis to succeed Howard Kern as president and CEO, Sentara announced Friday.

Kern announced his retirement earlier this year after spending more than 40 years at the Norfolk-based health care system.

Matheis will take the helm on Sept. 1. He has served as president of Sentara Health Plans and executive vice president at Sentara Healthcare since 2018 and has 30 years of senior leadership experience, according to Sentara. He led the modernization of Sentara Health Plans to provide digital tools to members and implemented innovative models of care with provider partners and the joint ownership transaction of Virginia Premier with Virginia Commonwealth University Health System.

Sentara Health Plans division has more than 950,000 members, more than 25,000 physicians and more than 100 hospitals in its network. Under Matheis’ leadership, the division’s number of members has doubled.

Before joining Sentara, Matheis was senior vice president of Anthem Inc. and was president of Anthem’s Central Region and exchanges. He has held senior leadership roles at Anthem Blue Cross and Blue Shield of Missouri, Cigna Healthcare and Humana Healthplan and Advocate Health Care in Chicago.

Additionally, he serves on the executive committee of the Virginia Association of Health Plans, the board of directors of the Virginia Chamber of Commerce and is a member of Board of America’s Health Insurance Plans.

Matheis earned a bachelor’s in accounting from the University of Kentucky and was a certified public accountant before he entered the health care industry.

Mars Inc. names new CEO

McLean-based Mars Inc. will have a new CEO in September and the news comes at a time when the privately held global candy and pet food manufacturer is experiencing major growth.

Grant F. Reid, who has served as CEO of Mars since 2014, will step down in September, with plans to fully retire by the end of the year. Poul Weihrauch, currently global president of Mars Petcare, the company’s pet food and veterinary health division, will become Mars’ new CEO, the company announced Wednesday.

Mars’ products include M&M’s, Snickers, 3 Musketeers, Life Savers, Skittles, Twix, Ben’s Original rice, Wrigley’s gum and Life Savers. The company filed plans in April to expand and update its downtown McLean headquarters.

Weihrauch, who is based in Brussels, will relocate to the company’s global headquarters in McLean, a Mars spokesperson confirmed. According to the company, Mars Petcare employs nearly 100,000 workers in 130 nations. In addition to manufacturing pet food, the Mars Petcare is a veterinary health provider through an international network of more than 2,000 pet hospitals and diagnostic services.

In a statement, Reid said, “It has been a privilege to lead the Mars team and work closely with the Mars Family. We have built on our core strengths and moved into new areas, setting the business up for a brilliant, sustainable future.”

Under Reid’s tenure, the privately held Mars’ revenue has grown by more than 50% to nearly $45 billion, surpassing Fortune 500 companies such as Coca-Cola and Virginia Fortune 500 companies such as Falls Church-based General Dynamics Corp. and Northrop Grumman Corp. During Reid’s time as CEO, the number of Mars employees also more than doubled, from 60,000 to 140,000, the company said in a news release.

A Scotland native, Reid has worked for Mars for more than 30 years and led a number of social initiatives as CEO, and was particularly focused on battling climate change. He’s urged other companies to study their environmental impact, pointing out that Mars’ own evaluation revealed that the manufacturer of candy, pet food and other food products had the same carbon footprint as a nation as large as Panama.

In October 2021, the company pledged to achieve net-zero greenhouse gas emissions across its full value chain by 2050, a pledge in line with the Paris Agreement to reduce global warming.

“The scale of global intervention must be bolder and faster,” Reid said at the time. “Climate change is already impacting the planet and people’s lives.”

Reid told Mars’ board of directors 18 months ago that he intended to retire by the end of 2022. He and Weihrauch have been working on the transition for several months and Reid will stay at Mars through the end of the year. While it’s unclear what his role will be, Mars said Reid would “devote more time to following his passion as a champion for climate action, the sustainability agenda and the broader role for business in society.”

“While he is too modest to admit it, our significant transformation and record growth as a business would not have happened without Grant’s leadership,” Mars Board Chair Frank Mars said in a statement. “He has visibly lived our principles and embedded purpose at the heart of our business strategy. The Mars Family are tremendously grateful for his dedication and service.”

Weihrauch has worked in many parts of Mars’ business since 2000. He was the European brand leader for Snickers, and in 2014 became president of Global Petcare, which has diversified from pet food manufacturing into veterinary health products, including diagnostics tools, data tools, and software platforms.

“I am honored and humbled by this opportunity to serve the organization and our 140,000 Mars associates,” Weihrauch said in a statement. “This is an incredible company, which has consistently demonstrated that doing good is good business. It is that relationship that will ensure we keep delivering sustainable growth and performance.”

Mars named Loic Moutault, current president of Royal Canin, Mars’ French pet food manufacturing subsidiary, to take over Mars Petcare’s global operations. Cecile Coutens will become global president of Royal Canin.

 

Va. Tech receives $1M gift for learning accelerator

Virginia Tech on Tuesday announced that it will establish a new learning accelerator at the university’s Pamplin College of Business through a $1 million gift from an alumnus and his wife.

Omar Asali, a 1992 Virginia Tech graduate and chairman and CEO of Ohio-based Ranpak Holdings Corp., made the gift with his wife, Rula, through their family foundation.

The Asali Learning Accelerator will “provide a dedicated space for Pamplin undergraduates to receive and deliver academic coaching services that are tailored to support students’ individual academic goals,” according to a news release. It will be housed in the second building at Tech’s Global Business and Analytics Complex (GBAC), which is under construction and expected to be completed by 2025.

“Rula and I are proud to support educational initiatives that mentor students in both the classroom and applied situations,” Asali said in a statement. “Having immigrated to the United States from Jordan, I am grateful for the education I received from Pamplin. … The foundation of my undergraduate education 30 years ago well prepared me for the workforce and for graduate business school at Columbia University. The vision for GBAC elevates Virginia Tech’s reputation and reach with first-rate facilities that bring together business, engineering and science across one ecosystem.”

Ranpak Holdings provides sustainable, paper-based packing solutions for e-commerce and industrial supply chains. Asali has served on the board of the Virginia Tech Foundation since 2018, guest lecturing during Ethics Week, and serving as a Wells Fargo Distinguished Lecturer at Pamplin.

“We are grateful for Omar and Rula Asali’s generous commitment and for their continued philanthropic leadership and engagement in Pamplin,” Pamplin Dean Robert Sumichrast said in a statement. “This announcement marks a tremendous milestone in Pamplin’s efforts to scale its learning offerings for our undergraduate students.