Henrico County is getting a fifth Fortune 500 company. Global health care logistics and supply company Owens & Minor is moving from Hanover County to a new headquarters in Henrico’s Innsbrook Corporate Center.
The company is leasing the fourth floor of the Highwoods One building at 10900 Nuckols Road, according to Will Bradley, an executive managing director in Virginia for commercial real estate firm Newmark. Other tenants at the 130,803-square-foot Highwoods One building include LifeStance Health, a mental health care provider, and Primis Bank.
“Like many companies, Owens & Minor re-evaluated its office footprint in light of new workplace trends and the preferences of our teammates,” an Owens & Minor spokesperson said in a July 12 statement. “We recently finalized long-term plans for relocating our headquarters to a location in Innsbrook just minutes away from our current one and look forward to welcoming Richmond area teammates at the end of this year.”
In April, Newmark announced it had secured the $33.5 million sale of Owens & Minor’s 160,000-square-foot, Mechanicsville headquarters at 9120 Lockwood Blvd. in Hanover County to the Virginia Department of Transportation. In May, a VDOT spokesperson said the state agency’s central office will move to Hanover in summer 2025.
Owens & Minor has more than 20,000 employees worldwide with “hundreds of teammates that call the Richmond area home,” according to a spokesperson.
Henrico’s other Fortune 500 companies are tobacco products manufacturer Altria Group, conglomerate Markel Group, insurer Genworth Financial and convenience store and wholesale fuel company Arko.
“It’s a win for our region that … they’re going to continue to keep their headquarters in the Richmond region,” said Henrico Economic Development Authority Executive Director Anthony J. Romanello of the move, describing Highwoods One as “trophy office space.” He added, “There’s certainly a significant demand for very high-quality office space right now, and Innsbrook has that.”
Owens & Minor reported $10.3 billion in 2023 revenues, up from $9.9 billion in 2022.
The Virginia Department of Transportation has purchased the Mechanicsville headquarters of Owens & Minor for $33.5 million, with plans to move the state agency’s central office there in summer 2025.
Much of VDOT’s staff will move from the Annex building at 1401 E. Broad St. into the new building at 9120 Lockwood Blvd. in Hanover County, according to Jessica Cowardin, assistant director of communications for the state agency. The 160,000-square-foot campus in Atlee Station Business Park was built by Timmons Group in 2006. VDOT also purchased an additional 50 acres, according to Newmark Group, which brokered the deal.
Meanwhile, Owens & Minor expects to vacate the building by the end of this year. The Fortune 500 global health care logistics and supplies company plans to relocate its corporate headquarters somewhere in the Richmond region. While declining to specify where the company would move, a company spokesperson said the move “better reflects the current needs of our organization and our teammates.” Owens & Minor has 1,400 employees in Virginia and more than 20,000 worldwide, including hundreds of workers in the Richmond area.
The move will not impact the company’s operations and is a reflection of workplace trends and worker preference, according to the company.
In November 2020, Owens & Minor announced it was pulling the plug on its 90,000-square-foot downtown Richmond call center and would be seeking tenants to sublet the space after so many workers started working remotely.
“We’re proud that Owens & Minor has called Richmond, Virginia, home for more than 100 years, and look forward to our continued presence in the local community,” a statement from the company said.
Brandon Turner, director of Hanover County Economic Development, said Monday that he doesn’t expect Owens & Minor’s next headquarters to be located in the county. “It would be very difficult because we don’t have a lot of Class A office space,” he said. “What we have is very small, and I think what they’re looking for is larger than what we have available on the market in Hanover.”
Owens & Minor moving to a new headquarters is a double-edged sword, Turner said. The company will be off the county’s tax roll and VDOT, as a Virginia state agency, will not pay taxes.
“That in and of itself is a bit of a hit,” Turner said. “On the flip side, the building is heavily underutilized right now by Owens & Minor due to their [work-from-home] policies. When VDOT comes up, they will bring significantly more individuals up here, and those people will be going out into the neighboring businesses [and] eating, buying groceries, whatever. So if you own a business in this corridor, it’s going to be a boon.”
Andrew Sandquist and Adam Faulk, JC Asensio and Adam Petrillo, Briggs Goldberg, Will Bradley and Mark Williford, all of Newmark, represented the seller on the transaction.
Owens & Minor reported $10.3 billion in 2023 revenues, up from $9.9 billion in 2022.
Mechanicsville-based Fortune 500 global health care logistics firm Owens & Minor Inc. has received a $1.125 billion contract modification to provide medical surgical supplies to the military and federal civilian agencies, the Department of Defense announced Wednesday.
The award is for a second 30-month option period of a contract with three 30-month possible periods for worldwide ordering and distribution, according to the DOD, with a Dec. 5, 2024 ordering end date.
Owens & Minor was founded in 1882 and has distribution, production, customer service and sales facilities in the Asia Pacific, Europe, Latin America and North America. It employs more than 15,000 people and sells medical supplies to customers in 90 countries.
Employees at the Virginia Alcohol Beverage Control Authority’s Mechanicsville headquarters will be returning to in-person work three days a week, not the four or five days a week that will be required of many state workers beginning July 5, following Gov. Glenn Youngkin’s telework order earlier this month.
Virginia ABC CEO Travis Hill sent an email to ABC employees Thursday, noting that the plan to work in person at the authority’s new Hanover County office three days a week, with two days working remotely, is “the final part of our return to office strategy, originally announced in August 2021 and reaffirmed last December. This approach was based on survey feedback from employees and our long-term operational needs and completes a six-month effort on returning to the office.”
Hill, who was appointed by former Gov. Ralph Northam to lead the ABC in 2018, notes that as an authority instead of a state agency, the ABC has “greater latitude in how we manage our telework and hybrid work status.” The memo also says that the authority will use a new telework agreement form distributed by Youngkin’s office, and that all applications will be due June 15.
“All employees choosing to work a portion of the week remotely will need to complete the agreement and submit to human resources,” Hill wrote.
Currently, most of ABC’s roughly 500 administrative staff members are working two days a week in the office and three days remotely. The authority employs about 5,000 part-time and full-time employees, some of whom can’t telework due to the nature of their jobs, such as staffing retail ABC stores. In January, the authority changed its daily opening hours to noon in part due to retail workers being affected by COVID-19, which created a staffing shortage. In fiscal year 2021, Virginia ABC brought in a record $1.4 billion in gross revenue, including $237.3 million in profits from retail sales.
Youngkin’s mandate requires state workers who have been working from home since March 2020 to return to the office in person starting July 5, and it renders all prior telework agreements null and void, even for employees who live outside the immediate region of their workplaces and were hired with the understanding that they could work remotely. Agency heads can approve one telework day a week, while a cabinet secretary must approve two days a week. Anything above that will require the approval of Youngkin’s chief of staff, Jeff Goettman.
In a memo released May 5, during Virginia’s Public Service Week, Goettman announced the order and said that the governor’s office’s goal is “completion of all telework agreements by June 3.”
Some state employees and Democratic legislators have denounced Youngkin’s telework policy, saying that it will cause some workers to leave their jobs for more flexible opportunities in the private sector, and that the new policy is more restrictive than pre-pandemic standards.
Some state employees — including those who are among faculty and professional staff at state universities — are not subject to the policy, and it doesn’t apply to legislative or judicial agencies.
Mechanicsville-based Fortune 500 health care logistics company Owens & Minor Inc. announced Tuesday that it had closed its acquisition of Indianapolis-based Apria Inc. for a cash consideration of $1.6 billion.
Owens & Minor funded the purchase with a combination of debt and cash on hand.
The company is combining Apria and its Byram Healthcare Centers Inc. business to form a Patient Direct segment. The segment expands the company’s home health care business’ geographic reach, products and care needs it can cover.
Apria is a perfect complement to our Byram business,” Owens & Minor President and CEO Edward A. Pesicka said in a statement. “This portfolio expansion strengthens Owens & Minor’s position in the fast-growing home health industry and enhances our ability to support health care beyond the hospital for both new and existing patients.”
Daniel J. Starck, Apria’s CEO since 2015, will serve as president of the new segment. He is also an Owens & Minor executive vice president.
“We look forward to unleashing the full potential of our teammates in the new Patient Direct segment to achieve even better clinical connectivity between the patient, the provider and the payor,” Starck said in a statement.
Owens & Minor will also combine its global products, medical distribution and services businesses to create a Products & Healthcare Services segment.
Owens & Minor was founded in 1882 and has distribution, production, customer service and sales facilities in the Asia Pacific, Europe, Latin America and North America. It employs more than 15,000 people and sells medical supplies to customers in 90 countries.
Brought to you by Virginia Business and Bank of America, join us every other month for the Diversity Leadership Series — virtual fireside chats with a diverse group of Virginia business leaders sharing their insights and thoughts on leadership, their career paths, and diversity and equity.
Our series kicked off on July 20 with Brian Robertson, CEO of Mechanicsville-based Marion Marketing Global LLC, interviewing Ron Carey, founder and CEO of Tilt Creative + Production, a Richmond-based agency that produces advertising and promotional content for clients such as Capital One Financial Corp., Walmart Inc. and Audi of America.
Below is an abridged version of their conversation, edited for brevity and clarity.
Brian Robertson: Under your leadership, you have turned Tilt Creative + Production into a global player in the creative space. What do you attribute to the credit of your rapid growth?
Ron Carey: First of all, I’ll make a comment that I didn’t … do it by myself. I had a wonderful set of great partners. Stacy Murphy and Dave Trownsell are my business partners in that venture. First of all, we started with a small plan … to try and find a better way of creating content. That’s what we wanted to do. We wanted to make sure that we could do it with some of the best people in the world creatively as well as just some people who were just good people at their core. That’s really the foundation of Tilt.
Robertson:Briefly, Ron, explain to us how Tilt Creative + Production even came about.
Carey: That’s an interesting story. … This was 2017 and I had been running a small digital agency called Studio Squared. Studio Squared at the time primarily focused on creating content in-store for Walmart. There were some changes in the business, and we had a wonderful opportunity to step back and think about, “Where would we like the business to go moving forward?” That was November of 2017. At the time … one of my senior creatives said [to me], “Chief, you used to have a conversation with the Park Group. Dave and Stacy, they would be interesting. They’ve got some ideas and thoughts.”
From that conversation, started … this notion of what would happen if we took a creative company, Studio Squared, … and [a media production company like] Park Group and we merged it into one thing? At the time it was unheard of that you would have a creative agency and a production company all under one roof, but … we were anticipating that brands would have a need for a content partner, and a way to more easily develop content [and] develop a strategy around it. That started us on the path. We … literally moved across the street down to Park Group, and in January 2018, we started working together. That’s been almost four years now.
Robertson: That’s amazing — wow! — to have that vision.
Carey: I would like to think that was a vision. Some of it was a bit of luck. I think some of it was a bit about just being able to focus on seeing an opportunity. … We often hear business school professors talk about, “Well, what’s the need? What’s the problem to be solved?” … We believed enough in it that we thought, “Let’s go ahead and take the step.” When you can take the step with people that you trust, and you feel they’re going to hold up their end of the bargain, it makes it a lot easier.
Robertson: What has been some of your toughest challenges of being an entrepreneur in a media space that is dominated by people who mainly don’t look like us?
Carey: It’s interesting. Sometimes I’ll say it jokingly, but I’ve been Black 53 years, my entire life. You don’t think about it. … I think you recognize that there’s a transformation that was going on, both in media and marketing and advertising, Richmond, the broader community, as well as the broader business environment. I’m thankful, really, to my parents for this … approach of, “There are just some amazing people in the world. Some of them are going to look like you and some of them won’t look like you.” Some of the folks that didn’t look like me were folks that were incredibly influential on my career.
I look back at … what I learned from the Mars family [of Mars Inc.], because I spent 13 or 14 years working for the Mars family. I walked away with a vast amount of knowledge. … On the surface, we might not have had a lot of things in common, but from that experience, I was able to take The Five Principles away, just as one example.
I don’t think I thought about the racial component [in my own business] as much as I thought about, “How do you make payroll? How do you bring your talent along that you need to bring along? Do you really have something that’s compelling, that a client’s going to want to pay for?” Because at the end of the day, that’s what I want to make sure that we do.
The fact that I’m an African American is important, but I want … our clients to feel like the work that we do is amazing work, it’s smart work, it stands up against the work that anyone else can be doing, and for that, you’re willing to compensate us for it. That’s the path that I’ve gone down. I think along that journey … what I realized is I had been awarded this platform because of the success of the business and some of the things I’d done in the community … to be able to speak out about some things and bring awareness to some things, and also share a perspective back. … Maybe there were obstacles there from a race perspective, but quite honestly, I didn’t feel like I had the time to pause and think about it.
I will say this though, I remember … we had closed on the [Tilt Creative] deal [on] Jan. 31st, [2018]. The offices were empty, and I had been so busy that I had forgotten that it was Martin Luther King King [Jr.] Day. My head of finance came to me, and she said, “Wow, this is pretty amazing. You guys got this deal closed. You’ve been able to buy the company, get things started. Oh, by the way, happy Martin Luther King Day.” I was just like, wow. I had been so heads-down that I’ve forgotten what the time was. It was a momentous occasion for me.
Robertson: You work with a lot of global brands like Hellmann’s, Walmart, Audi. Tell us about a rewarding campaign that you worked on for not so much of a big brand.
Carey: I think that’s a really interesting one. A business partner, she thought highly enough of us to reach out to us. It’s a fairly small thing, but again, there were moments in times, there are pivotal moments, when things happen.
She brought us an opportunity for VCPI, Virginia Center for Policing Innovation. They were really looking for assistance on how to think about speaking to diverse communities, and not just African American, but Native American, so they wanted to have a very broad conversation about that. It’s been our pleasure, over the last several years, to find that voice of those communities, to be able to articulate and create a dialogue between the Virginia Center for Policing Innovation that they were working on and this broad set of communities. That’s just one that we took great pride in.
I love the brand work that we have a chance to do, but I also think about …. ChildSavers. It’s [a nonprofit] organization focused on mental health and child development services. We had the opportunity to develop a long-form piece of content to help tell the story around the work that they’ve been doing for almost 100 years, which is just amazing. It was our pleasure to just really get in and be able to tell an emotional story and help during a time where they’re going through a significant capital campaign.
Those are the two things that resonate with me as you start to think about how you take the art of storytelling and then have it impact the world.
Robertson: Tilt mainly creates content for online digital space as well as for television, repurposing it all over the place. Where do you see Tilt growing in the next five years?
Carey: I’ll get to what I think the growth is … [but] I feel like as the keeper of the culture … I think the intent, first and foremost, is let’s make sure that we continue to have a positive impact on the world. That’s the most significant thing. I often tell people, when we started the company, it wasn’t just purely about the profit that could be generated, it was not only about the opportunities, but it was about having a broader impact on the world, in our communities. Providing our folks a living and being able to invest in the things that we feel like make a difference to people, that would be a key driver for us.
That should ground where Tilt is over the next several years, but I see a really bright future. I feel like Tilt and the model that we’ve put together is something that certainly can grow across North America. You mentioned globally, we are already working globally. I think with the right opportunities that present themselves, I could certainly see another presence someplace else in North America … as well as outside, in perhaps Europe. … What’s happened over the last year and a half is we’ve all learned how to work remotely. We’ve made investments in technology. … Now we can shoot and record things out of our production studio and then have clients sit almost virtually anywhere in the world and provide feedback on cuts and edits and things that we’re doing. The business model has shifted dramatically and may not require nearly as much physical structure because you can work from anywhere in the world as long as you’ve got the right connectivity.
Robertson: Absolutely. With a staff of over 40 people, how do you find all of these great creative minds, first of all? And how do you keep them all engaged and happy?
Carey: That’s an interesting challenge, right? Creative people are really interesting, as you know, and unique and special. It’s like harnessing a bunch of superpowers together. It’s like getting a team of the Avengers and trying to get them to all work together, move in the right direction, but I think we do it well. … How do we do that? I think it [goes] back to that bit around the culture that I was talking about — truly being a culture that cares about people, that seeks people who are really good to their core, that’s massive. I can’t teach you that. I can’t give you that gift. I can model it for you, but I think if you have it inherently, then we should attract those kinds of people.
When you look for good people, and you find them, and you treat them well, it starts to attract other people. I think that’s the most powerful talent model that we’ve got. … Once that radiates to the world, there are others that then want to say, “Gosh, that’s something I want to be a part of.” That’s literally what I think my role is: to make sure that we can set up that type of environment and model that behavior, such that others say, “That’s something I want to be a part of.”
Robertson: For my final question, what motivates you each day? What makes Ron Carey care in Tilt?
Carey: It’s something that I would challenge anyone who’s looking at this to think about, and that is understanding what your purpose is. Several years ago, I came to the conclusion that my purpose was to leave this world better than I found it and have a positive impact on the lives of people that I come in contact with. Some of those interactions may be big, some of those interactions may be small. … It’s not about the words you say, it’s about the feelings that you leave people with, and that’s what I want us to continue to do.
What motivates me is looking at my three daughters, two of which are grown now, and putting people into the world who are resilient and thoughtful, and hopefully wanting to have an impact.
Then I look with great pride [at] the 45 employees that we’ve got, that are doing things in the world and being thoughtful and having an impact on both clients and the broader Richmond community. That’s what keeps me going, man. I’m an optimist to my core. I will continue to be optimistic about the opportunities both for Richmond and our business and the broader community. That’s just how I roll. ν
Henrico-County based insurance company The Hilb Group LLC finalized its acquisition of Health Quote of Rhode Island Inc. on July 1, it announced Tuesday.
Financial terms of the transaction were not disclosed.
Health Quote specializes in Medicare offerings, and its clientele will join THG’s Medicare practice.
THG CEO Ricky Spiro said in a statement, “Our strategic approach to growth is focused on continuing to build on the services and expertise that we bring to our customers. We are pleased to expand our Medicare business and offerings, as we see tremendous opportunity here for the future, and we know that we can have a positive impact in the lives of those we serve.”
Salem-based Ryan Harris Insurance and Financial Services Inc.
Roanoke-based Keith Ghaphery and Associates Inc.
Manassas-based Harvey Insurance Agency
Virginia Beach-based Mayo Insurance Agency Inc. and Williamsburg Insurance Agency LLC
Richmond-based Ronnie Shriner Insurance Agency
All agencies’ principals and teams will join THG’s Mid-Atlantic regional operations.
THG was founded in 2009 and has been a portfolio company of Washington, D.C.-based investment management company The Carlyle Group since 2019. Across its more than 100 offices in 21 states, the company employs more than 900 people. THG has acquired more than 100 companies.
Chantilly-based tech systems integrator Corbett Technology Solutions Inc. (CTSI) announced last week it has acquired the integrated security solutions division of Mechanicsville-based electrical contractor Electrical Controls & Maintenance (EC&M).
Financial terms of the transaction were not disclosed.
EC&M was founded in 1996 and in 2001 launched its security systems integrator division, which serves health care, government and education customers. The acquisition will allow CTSI to install additional security systems. CTSI provides design, installation, integration and managed and subscription services.
“Their expertise, track record of excellence and commitment to service are perfectly aligned with our core values, and this is a move that certainly expands the benefits we can bring to the customers of each company,” CTSI President and CEO Gino Ruta said in a statement.
The Signal Hill Apartments complex in Mechanicsville sold for $7.6 million on March 26, according to Glen Allen-based real estate company Commonwealth Commercial Partners LLC.
Signal Hill includes 68 units and one four-bedroom rental home and is located at 8111 Signal Hill Road.
The property came on the market during fall 2019 and was sold to an affiliate of Washington, D.C.-based Peak Strategic Capital. The buyer financed the purchase through Freddie Mac.
Bruce Milam, Chip Louthan and Colton Konvicka of Commonwealth Commercial represented the seller in the transaction.
Mechanicsville-based Fortune 500 medical supply distribution company Owens & Minor Inc. has appointed retired U.S. Army Lt. Gen. Gwendolyn “Gwen” Bingham to its board of directors, effective March 5.
Bingham is a retired three-star U.S. Army lieutenant general and most recently was the Department of the Army’s assistant chief of staff for installation management, providing policy, programs and resourcing expertise for 156 Army installations. She has served in military leadership positions in the U.S. and overseas.
She received the 2018 Ellis Island Medal of Honor and the 2018 Women in Defense Service to the Flag award. Bingham earned a master’s degree in national defense strategy and resources from the National Defense University, and her master’s degree in management from Central Michigan University. She also holds a bachelor’s degree in business administration from the University of Alabama.
Owens & Minor was founded in 1882 and has distribution, production, customer service and sales facilities in the Asia Pacific, Europe, Latin America and North America. It employs more than 17,000 people and sells medical supplies to customers in 90 countries.
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