For the Record – December 2014

SOUTHERN VIRGINIA
Keysville-based Blue Ridge Railcar Repair LLC unveiled a $2.4 million expansion plan that’s expected to create 37 jobs. The company was created earlier this year when Patriot Rail Co. LLC acquired Alderman Railcar Services Inc. Jacksonville, Fla.-based Patriot Rail operates 500 miles of railroads and railcar repair facilities in 14 states. Incentives included a $100,000 grant from the Governor’s Opportunity Fund and a $155,000 grant from the Virginia Tobacco Indemnification and Community Revitalization Commission. (VirginiaBusiness.com)

Dan River Business Development Center has been a key player in the Dan River Region’s reboot efforts following the economic decline that left many out of work. Thirteen years into its work, the center takes credit for helping create about 2,000 local jobs. DRBC is a “business incubator” that offers office, light industrial and warehouse spaces. The 30,000-square-foot center has housed various businesses and organizations for short-term stays.
(Danville Register & Bee)

Danville’s River District development project has been named the winner in its population category for the Virginia Municipal League’s 2014 Achievement Awards. According to a news release, the $20 million spent to date in public investment in the River District has generated more than $90 million in private investment. The awards recognize the accomplishments of member local governments for innovative problem-solving, excellence in management, increasing citizen participation and striving toward higher service levels. (GoDanRiver.com)

Danville’s Ikea plant will add a new production line by January 2016 — and the expansion will result in an undetermined number of new hires by the company. Recruitment for the new positions has started. Positions will be posted with the Virginia Employment Commission, and the new hires will be trained along with current employees. Ikea opened its Danville factory in 2006. As the company’s sole American plant, the Danville Ikea facility employs 420 workers. (Danville Register & Bee)

Danville-based TekaByte is expanding its space at its current location at a Piney Forest Road shopping center to add more offices, cubicles, workstations and lab space. The newly leased space is next door to the current location. “We are currently in just over 1,000 square feet, and we’re moving to just under 3,400 square feet. So we’re more than tripling our space,” CEO and President Tim Saunders said. The technology consulting company also planned to hire seven new IT-related positions.
(Danville Register & Bee)

The Arc of Southside has received an $850,000 grant from the Community Foundation of the Dan River Region that will allow it to move employment services from its Blairs campus to a more accessible location. The grant will be used to purchase a building that will house the Hatcher Center Workshop, the Arc’s Supported Employment program and administrative services.  (WorkItSoVa.com)

The Virginia Community Colleges Association awarded the Patrick Henry Community College public relations and marketing staff eight awards in eight categories during the 32nd annual conference Oct. 2-4 in Arlington. About 10 colleges participated with more than 100 entries submitted and judged by professionals in public relations, marketing and communications. (Work It, SoVa)

SOUTHWEST VIRGINIA

Allstate Corp.’s Roanoke County office is trimming its payroll again, a company spokeswoman said Oct. 16. Chris Bauer said the cuts, of an unspecified number of jobs in the “technology and operations” business unit, helped or will help the company stay competitive. “We understand that these decisions are difficult for individuals whose jobs are affected,” Bauer said by email. Allstate spokespeople have discussed job cuts five times in the recent past, dating back to April 2013 when employment stood at 900. (The Roanoke Times)

Andrews Farming Inc. and sister company ANDCO Logistics Inc. are planning to expand their operations in Carroll County, creating 51 jobs. Gov. Terry McAuliffe said that the companies plan to invest more than $5.6 million to expand their agricultural production, warehousing and distribution operation.  The Virginia Tobacco Indemnification and Community Revitalization Commission approved $225,000 in funding for the project. (The Associated Press)

Dynax America Corp. is investing $32.6 million to expand its automotive components manufacturing facility in Botetourt County. The expansion is expected to create 75 jobs. The company makes automatic transmission components, friction disks, mating plates and assemblies. Incentives included a $225,000 Governor’s Opportunity Fund grant and a $250,000 performance-based grant from the Virginia Investment Partnership program. (VirginiaBusiness.com)

Mersen USA, a subsidiary of France-based Mersen SA, will expand operations in Salem with a $5.7 million investment that will relocate one of the company’s business divisions and create 50 jobs. The Salem facility designs and manufactures graphite and silicon carbide heat for highly corrosive and high-temperature fluids and skid systems. The project will expand Mersen’s skid systems capacity, as well as relocate the company’s reactive metal equipment manufacturing business from California to Salem. Gov. Terry McAuliffe approved a $140,000 grant from the Governor’s Opportunity Fund. (VirginiaBusiness.com)

Michigan-based Wolverine Advanced Materials will invest $10.6 million in expanding its specialty rubber-coated materials manufacturing operation in Montgomery County. The expansion is expected to create 93 jobs. The company produces high-performance materials used in automotive and industrial noise reduction for brake and sealing applications. Gov. Terry McAuliffe approved a $250,000 grant from the Governor’s Opportunity Fund to assist Montgomery County with the project. (VirginiaBusiness.com)

After three years, the owners of The Inn on Campbell in Roanoke have put the property up for sale. The bed and breakfast location was put on the market for $998,000. Keith Hummer, who owns The Inn on Campbell with his wife, Cindy, said the couple are looking to move away from the Roanoke region and start a bed and breakfast elsewhere. He wasn’t sure exactly where they are headed but said they are looking at a few different places. (The Roanoke Times)

SHENANDOAH VALLEY
Dascom expects to start production at its consolidated Verona headquarters next year. The company moved from Waynesboro and Lyndhurst. The new headquarters will allow for production of Sonaray industrial LED lighting and feature technical support and administration. The new facility will open with 14 employees, with a dozen more to be added. Dascom invested $2.5 million in the 20,000 square-foot building. (News Leader)

The Luray Triathlons, the annual two-day race that starts every summer at Lake Arrowhead was acquired by Racine MultiSports for an undisclosed amount. The event that began when David Glover of Reston walked into Appalachian Outdoors Adventures (AOA) in Luray in 2005 and met with Gary and Linda Drum with the idea of starting a triathlon — has become the town’s largest event. (Page News and Courier)

Arizona-based Shamrock Farms has opened its Augusta County milk plant at the Mill Place Commerce Park in Verona. The 190,000-square-foot building was constructed in 13 months on a 40-acre parcel of land. The property has room for expansion.  The facility, which currently employs 50 people, will produce protein-fortified milk beverages. When the project was announced last year, the anticipated cost was $50 million. The builder is Howard Shockey & Sons Inc. of Winchester. (VirginiaBusiness.com)

Warren County will be home to something the Shenandoah Valley has never seen before — a compressed natural gas (CNG) service station. The station will be an unmanned, 24-hour self-service station where drivers will pay with credit or debit cards to fill their vehicles up with natural gas. Interchange has contracted the Universal Air & Gas Products (UA&GP) Corp. of Norfolk to build the station. (The Warren Sentinel)

The Virginia Conservation Legacy Fund announced in October a $4 million project, which will renovate the 156 rooms of the Natural Bridge Hotel. The room renovations are the first of a three-phase plan that will unfold during the next 10 years to fulfill the aim to not only show off the iconic bridge once owned by Thomas Jefferson but an array of amenities and vistas that are being uncovered. The Virginia Conservation Legacy Fund has spent about $1 million already on improvements. (The Roanoke Times)

The Shenandoah Valley Partnership announced the unexpected passing of Dennis Burnett, their executive director, in October. Burnett was with the partnership, which provided resources to Staunton, Waynesboro, Harrisonburg and Augusta, Rockbridge and Rockingham counties and businesses throughout the Valley, for more than a year. Prior to that he served as Augusta County’s first-ever economic development director, a post he began in 2009. (The News Leader)

Waynesboro-based Lumos Networks Corp. appointed Johan G. Broekhuysen, as executive vice president, chief financial officer and treasurer. He also remains the company’s chief accounting officer. He previously was interim chief financial officer and corporate controller for six months. (VirginiaBusiness.com)

EASTERN VIRGINIA
 Aetna Insulated Wire , a producer of specialty cable and building wire, has expanded its manufacturing operations in Virginia Beach. The addition of one product line and the expansion of another manufacturing segment created 25 jobs. The company occupies 380,000 square feet at 1537 Air Rail Blvd. in Virginia Beach and employs approximately 115 people. The company received a $40,000 Economic Development Investment Program grant from Virginia Beach for the project, based on its $6.3 million investment in new machinery and tooling and the number of jobs created in the city. (VirginiaBusiness.com)

 DOMA Technologies LLC , a Virginia Beach-based company specializing in cloud-based data and document management, plans to create 150 jobs and lease an additional 15,000 square feet of office space. The expansion will support the company’s recent $50 million, four-year contract from the U.S. Department of Veterans Affairs to help improve timeliness in the processing of claims for disability benefits. The additional space will be next to DOMA’s current headquarters. (VirginiaBusiness.com)

 Green Flash Brewing Co.  started construction in October on its 58,000-square-foot brewery, tasting room and beer garden in Virginia Beach. Upon opening, the Virginia Beach facility will employ 40 people and represent $20 million of invested capital. “When they reach capacity, Green Flash will be producing 100,000 barrels of beer every year from Virginia Beach, and that is certainly something to celebrate,” Mayor William D. Sessoms of Virginia Beach said in a statement. (VirginiaBusiness.com)

 MMM Design Grou p, the Norfolk a rchitecture and design firm behind the city’s Town Point Park, closed its doors after nearly 70 years in business. The firm never made any public announcement that it was closing its doors this summer and company leadership did not return requests for interviews on Oct. 9. A former employee, however, confirmed that the firm, once listed among the region’s top 10 architectural agencies, shut its doors weeks ago. (Inside Business)

Hampton-based Statewide Fire Protection acquired the fire suppression division of Richmond-based Sutton-Clark Supply Inc. to create a full-service fire protection company serving Hampton Roads, Central Virginia and Northern Virginia. Statewide –  which designs, installs and services fire alarms, suppression systems, and automatic sprinklers – will now have an office in Richmond and more than 25 employees statewide, according to a news release. The purchase price was not disclosed. (Daily Press)

Despite a lawsuit, Suffolk-based TowneBank says its acquisition of Glen Allen-based Franklin Financial Corp. is on track. The stock-for-stock deal still needs to get approval from regulators and the shareholders of both companies. TowneBank Chairman and CEO G. Robert Aston Jr. said the transaction is scheduled to close Jan. 2. Both TowneBank and Franklin shareholders are expected to vote on the merger Dec. 3, he said. (Daily Press)

New York City-based Turner Construction has been hired by the U.S. Army Corps of Engineers to build a $23 million tech facility that will give NASA Langley Research Center scientists better access to high-performance computers. The 40,000-square-foot facility in Hampton will act as a data center and “high-density office space” for the federal research center that performs aeronautical, space exploration and science research. The facility is scheduled to open in August 2016. (Daily Press)

The Portsmouth Midtown Kroger Marketplace at 1301 Frederick Blvd. opened Oct. 15. Kroger Limited Partnership, an affiliate of The Kroger Co., developed the store at the former home of I.C. Norcom High School. Similar to the Virginia Beach Marketplace, the Portsmouth store offers shoppers more than groceries with 30,000 square feet set aside for home-store offerings ranging from apparel to home décor. (VirginiaBusiness.com)

Virginia Beach-based Wheeler Real Estate Investment Trust Inc. acquired its operating companies. The deal involved Wheeler Interests LLC, Wheeler Real Estate LLC and WHLR Management LLC (Wheeler Management). Wheeler Interests and Wheeler Management were wholly-owned by Jon S. Wheeler, the company’s chairman and CEO, while Wheeler Real Estate is wholly-owned by Wheeler Interests. The company paid for the operating companies through the issuance of $6.75 million in operating partnership units/UPREIT shares. (VirginiaBusiness.com) 

The brokerage and consulting firm USI Insurance Services is leasing 19,335 square feet of office space in the Town Center of Virginia Beach. The Virginia Beach-based commercial real estate firm Divaris Real Estate Inc. said USI is moving to newly renovated space at 4605 Columbus St. The company currently has Hampton Roads offices in Norfolk. USI will bring about 150 employees to Virginia Beach. The New York-based company has more than 4,000 employees at more than 140 offices throughout the U.S. (VirginiaBusiness.com)

Ferguson broke ground on its new Newport News showroom. Contractors began clearing trees and brush on the future showroom site at its corporate campus along Jefferson Avenue in October. Christine Dwyer, Ferguson public relations manager, said officials are targeting a third quarter 2015 opening for its new showroom. The 15,000-square-foot building will cover roughly four of the 10 acres Ferguson purchased from the Newport News Economic and Industrial Development authorities in June 2013 for nearly $2.8 million. (Daily Press)

Newport News-based Langley Federal Credit Union says it plans to open its first Virginia Beach location in the Hilltop area early next year. The branch at 741 First Colonial Road at the Hilltop Market Place Shopping Center will feature Langley’s new design with a full-service ATM, according to a news release. Langley has more than 204,000 members, 17 branches and more than $1.9 billion in assets. (Daily Press)

NORTHERN VIRGINIA
McLean-based BAE Systems is set to acquire SilverSky, a Connecticut cybersecurity firm, for $232.5 million. The move is part of the British contractor’s strategy to expand its footprint in the U.S. commercial cybersecurity market, a BAE Systems spokeswoman said. SilverSky, which designs cloud-based cybersecurity solutions for commercial clients, counts Goldman Sachs and venture capital group Bessemer Venture Partners among its investors. Its clients have included United Airlines and Farmers Insurance Group. (The Washington Post)

Fairfax-based consulting and technology contractor ICF International signed an agreement to acquire Minneapolis-based digital marketing company Olson for $295 million in cash, according to ICF. Olson’s employees will remain in Minneapolis, chief executive Sudhakar Kesavan said. The acquisition of Olson — and 545 employees — is part of ICF’s plan to ramp up commercial business and to offer government customers more services, Kesavan said in an interview. (The Washington Post)

Tysons Corner-based ID.me acquired New York-based student shopping startup Perkla. Terms of the deal were not disclosed. ID.me launched as a way to provide persistent digital credentials for members of the military to claim online retail discounts, and in 2013 announced an expansion to first responders and students. Perkla serves the same purpose for college discounts, requiring an .edu address to become a member. Perkla CEO and co-founder Justin Belmont will become director of product management at ID.me. (Washington Business Journal)

The John F. Kennedy Center for the Performing Arts in Washington, D.C., is receiving a five-year $5 million gift from McLean-based Capital One Financial Corp. The money will fund “Comedy at the Kennedy Center,” a series of events aimed at elevating comedy as an art form. The program will include the annual Mark Twain Prize for American Humor, main-stage productions such as “Shear Madness” and a comedy series that will bring three high-profile comedians to the center. (VirginiaBusiness.com)

Reston-based Leidos agreed to pay $1.5 million to resolve a False Claims Act lawsuit alleging it knowingly engaged in prohibited conflicts of interest as a contractor for the U.S. Nuclear Regulatory Commission. The alleged behavior took place between 1992 and 2000 when the company was called Science Applications International Corp. The False Claims Act claims resolved by the settlement are allegations only, and there has been no determination of liability with respect to those claims. (Washington Business Journal)

Falls Church-based USIS laid off more than 2,500 employees after losing its contracts with the Office of Personnel Management (OPM). “For each of the OPM contracts, there are successor contractors who will perform the work. It is our expectation that most, if not all, employees leaving USIS and who are interested will receive job offers by the successor contractors,” a spokesman for USIS said in an emailed statement. This summer USIS was the victim of a cyberattack, which potentially exposed the records of thousands of government employees. The OPM and Department of Homeland Security suspended work with the contractor soon afterward. (The Washington Post)Virginia Partners Bank, the Fredericksburg-based interstate commercial bank, began a public offering of its common stock, offering up to 500,000 shares at $10.75 per share. This is the second time VPB has offered its shares to the public. The offering is expected to close around Dec. 30, or earlier if all shares are sold before that date. The offering is subject to extension on Feb. 1, 2015, with VPB possibly offering another 500,000 shares if the event is oversubscribed. (The Free Lance-Star)

Dulles Landing, the future retail and commercial outlet at the corner of Route 50 and Loudoun County Parkway, which was originally slated to be built in 2013, is delayed until sometime in 2015. The reason for the delay has not been announced. The retail center is expected to house a Super Wal-Mart, TJ Maxx, Homegoods, PetSmart, Michael’s, Toys R Us and other tenants. (LoudounTimes.com)

McLean-based Booz Allen Hamilton has purchased the health-care unit of Genova Technologies. The acquisition includes a facility in Baltimore with a staff of 40 people who provide IT solutions and strategy for the U.S. government’s Centers for Medicare and Medicaid Services (CMS). The move will expand Booz Allen Hamilton’s IT support of the Department of Health and Human Services and expands its engineering and technology expertise for government and commercial clients. (VirginiaBusiness.com)

CENTRAL VIRGINIA
Colonial Downs, the state’s only pari-mutuel wagering enterprise, held its final horse race in October. The owner has surrendered his license, and the fate of the track remains unclear. The races began in 1997. The shutdown stemmed from a dispute over how many Thoroughbred races to hold at the track each year. The owner wanted fewer races with bigger prize money for the participating horses. The horsemen’s association he worked with disagreed. (Richmond Times-Dispatch)

Richmond-based Health Diagnostic Laboratory Inc. in November laid off 132 employees,  about 15 percent of its total work force. CEO Joe McConnell said the job cuts resulted from a renewed focus on HDL’s core mission: advanced laboratory testing to detect disease. HDL had cut 30 jobs in August. The company is under scrutiny as part of a federal probe of industry reimbursement practices.  Connecticut-based health insurer Cigna also is suing HDL to recover $84 million in insurance claims. Former CEO Tonya Mallory stepped down in September, citing family reasons. (VirginiaBusiness.com)

Richmond-based Reckitt Benckiser Pharmaceuticals Inc. (RBP) should be spun-off from its parent company by the end of the year, the firm said in October. The pharmaceutical company should be separated from United Kingdom-based Reckitt Benckiser Group plc (RB) by Dec. 31. RB, a consumer goods company, announced the spinoff plans in July. RBP will operate independently under Indivior PLC. (VirginiaBusiness.com)

Connecticut-based Starwood Capital Group has completed its $1.4 billion purchase of seven regional shopping malls, including MacArthur Center in Norfolk and Stony Point Fashion Park in Richmond. The seller was Taubman Centers Inc., based in Bloomfield Hills, Mich. Under the deal announced in June, Starwood paid $785 million in cash and assumed $620 million in debt. The company said existing management teams will continue to operate the properties under the direction of Starwood Retail Partners. (VirginiaBusiness.com)

UniTao Pharmaceuticals LLC has purchased the Boehringer Ingelheim plant in Petersburg and will invest $22.5 million to establish operations. The company, a subsidiary of Shanghai-based Tenry Pharmaceutical Co. Ltd., manufactures active ingredients for common over-the-counter medications. According to the governor’s office, the project is expected to create 376 jobs over three years. (VirginiaBusiness.com)

Richmond-based Avail Vapor plans to have a total of about 50 stores open by the end of 2014. That will include stores in the Washington, D.C., area, North Carolina, Tennessee and more than a dozen around Virginia with seven in the Richmond market. The company, which opened its first retail shop in Carytown last year, already has 23 stores open around the Mid-Atlantic. Avail planned to open another seven stores by November in Virginia Beach, Hampton, Midlothian and North Carolina. (RichmondBizSense.com)

Fairfax-based Commonwealth Orthopaedics and Richmond-based OrthoVirginia will merge their practices on Jan. 1. When the merger takes effect, Commonwealth Orthopaedics will change its name to OrthoVirginia. The combination is expected to create the largest orthopedic specialty group practice in Virginia, with 82 physicians, 21 office locations, an MRI facility, and multiple physical and occupational therapy clinics and outpatient surgery centers. Financial details of the merger were not released. (VirginiaBusiness.com)

Virginia-based Hourigan Construction will be awarded the contract to build the $23 million production facility Stone Brewing Co. is planning in Richmond, though the discussions about why Hourigan was selected occurred behind closed doors and key details of the project are not yet settled. Hourigan, partnering with the Timmons Group engineering firm in Richmond, will subcontract much of the work to other companies. Stone hopes to occupy its 200,000-square-foot brewing facility by November 2015. (Richmond Times-Dispatch)

Intersections Inc. will close its Altavista call center, affecting 77 jobs there starting in December. The closure was “a result in decline in revenue caused by changes to the regulatory environment and financial sector,” according to the company’s Virginia WARN notice, which notifies the state of a major layoff or closure. The call center was established four years ago in Altavista, when the Chantilly-based company announced it would hire 250 people there. (The News & Advance)

Richmond based CapTech, an IT consulting firm, plans to hire 100 employees by the end of next year. The company currently has more than 450 employees at five offices and a number of satellite locations throughout the U.S. The positions to be filled include mobile developers, customer experience managers, project managers, analysts and data scientists. CapTech’s services include management consulting, systems integration and data management. (VirginiaBusiness.com)

Chesterfield County-based engineering and technology company Timmons Group agreed to acquire local software development and consulting firm Evenspring. Evenspring, founded in 2013 by Aujang Abadi, Tyler Carbone and Allen Hatzimanolis, focuses on mobile Web design and development. The Chesterfield-based company serves a client base ranging from middle-market firms to Fortune 500 companies. Terms of the deal were not disclosed. The transaction was expected to be completed Nov. 15. (Richmond Times-Dispatch)

A group working to develop a freestanding children’s hospital for the Richmond region has signed an agreement with Bon Secours Virginia Health System, Virginia Commonwealth University and the VCU Health System to move forward with negotiations. The new nonprofit Virginia Children’s Hospital Alliance also said in October it has raised $6 million for planning, appointed board members and partnered with the VCU Brandcenter to develop a unique identity for the proposed new hospital. (Richmond Times-Dispatch)