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Chesterfield Carvana facility opens with 240 employees

Fortune 500 used car online retailer Carvana Co. is more than halfway to its 400-employee hiring goal for its $25 million, 191,000-square-foot Chesterfield County inspection center, General Manager Robert Sheets said Wednesday at the center’s ribbon cutting.

Carvana has hired 240 employees and expects to reach 400 workers when it begins full production later this year. The company started training employees at the end of June.

Gov. Glenn Youngkin attended the ribbon cutting and toured the facility at 15100 Woods Edge Road, near the county’s border with Colonial Heights.

“This is the final step of a real vision that got interrupted by the pandemic,” he said, “and this path to normalcy takes lots of twists and turns. That path to normalcy here in Carvana was all about persistence and fortitude, and finishing a project that needed to be finished.”

The project has had a bumpy road following its initial announcement in December 2019. Carvana paused the project amid the pandemic and then announced it would move forward in April 2021.

The Chesterfield center is Carvana’s 18th inspection center in the U.S., Sheets said.

“Our inspection centers are where we repair, recondition and prepare vehicles for sale on our online platform,” Sheets said. “Vehicles sold from our inspection centers can find their way to customers anywhere in the country.”

Carvana General Manager Robert Sheets (left) gives Gov. Glenn Youngkin a tour of Carvana's inspection center in Chesterfield County.
Carvana General Manager Robert Sheets (left) gives Gov. Glenn Youngkin a tour of Carvana’s inspection center in Chesterfield County. Photo by Katherine Schulte

The facility launched operations with one production line, but Carvana plans to have three lines running by the end of the year.

“I would say by [the end of] November we would be ramped up where we would have about 400 people here and three production lines,” Sheets said.

The facility has capacity for eight production lines, he added, which would likely require more than double the 400 employees being hired now. There is no defined timeline for a further expansion, he said.

“Approximately 10,000 vehicles will be housed on this facility at one time,” Sheets said. Carvana employees perform 150-point inspections on each car. The center has “domes” to take 360-degree photos of vehicles for its online listings.

The target for one production line is 160 cars per week, and the facility would inspect and recondition about 480 cars a week by the end of the year. Should its production expand to eight lines, the center would complete inspections on almost 1,300 cars a week.

Carvana currently has nearly 350 employees across Virginia. The online retailer also has a car vending machine — a large metal and glass tower with stories of cars — that opened last November in Richmond. Buyers can choose to pick their cars up from that vending machine, so some cars from the Chesterfield center could end up there.

At the opening of the facility, Del. Carrie Coyner, R-Chesterfield, praised the company. “While people will ooh and ahh over the Richmond vending machine, which I admit is pretty darn cool, it will be this quiet, hard-working inspection center that ensures that vehicles are ready to keep our roads safe,” she said.

Founded in 2012, Carvana is based in Tempe, Arizona, just outside of Phoenix. It has more than 75,000 vehicles for sale online. In 2021, the e-commerce company reported $12.8 billion in revenue, a jump from $5.59 billion in 2020, and sold 425,237 vehicles.

Amazon opens new Chesapeake facility

Last week Amazon.com Inc. opened its new, 640,000-square-foot processing facility in Chesapeake, the global e-tailer’s first cross-dock fulfillment center in Virginia.

About 900 of the 1,000 workers that Amazon announced it would be hiring for the facility are already on the job, an Amazon spokeswoman told Virginia Business.

Located at 5045 Portsmouth Blvd., the Chesapeake center receives and consolidates products from vendors and ships them to surrounding fulfillment centers within Amazon’s network. A similar facility planned for Stafford County will create 500 jobs and is expected to be operational by the second half of the year.

“Amazon has quickly become one of Hampton Roads’ largest and most engaged employers,” Hampton Roads Alliance President and CEO Douglas L. Smith said in a statement. “The opening of this facility in Chesapeake represents yet another milestone in their tremendous growth in the region, aided by the impressive collaboration between our partners in the city of Chesapeake, [the] Virginia Economic Development Partnership and the Port of Virginia. We are confident that this is only the beginning of Amazon’s relationship with the Hampton Roads community.”

Full-time employees at the Amazon facility make $18 an hour, and earn benefits such as a 401(k) with 50% company match and up to 20 weeks of parental leave, the company says.

Amazon has opened facilities all over the commonwealth, first launching its Virginia operations in Sterling in 2006. Since 2010, Amazon has invested more than $34 billion in Virginia through fulfillment centers, cloud infrastructure and research facilities. The e-commerce giant has made 30,000 direct hires and created 96,000 indirect jobs, according to a news release. Amazon is also building out its multibillion-dollar HQ2 East Coast headquarters in Arlington County.

Carsales.com to fully acquire Trader Interactive

Australian online auto sales forum Carsales.com Ltd. plans to acquire the remaining 51% of Norfolk-based Trader Interactive from Eurozeo and Goldman Sachs Asset Management for $839.14 million, the companies announced this week.

Carsales.com bought 49% of Trader Interactive in August 2021 for $624 million and will now own the company in its entirety, funding the latest transaction through a combination of equity and debt. The deal is expected to close in the third quarter.

An announcement of the deal placed the Norfolk startup’s enterprise value at $1.87 billion, well above the unicorn threshold.

Founded in 2010, Trader Interactive runs marketplaces for buyers, sellers and renters of powersports and recreational vehicles, aircraft, marine and commercial vehicles, and heavy equipment. Through brands such as Cycle Trader, RV Trader, Commercial Truck Trader and Equipment Trader, it reaches more than 13 million unique monthly users and hosts more than 9,500 dealers. The company has more than 380 employees.

“The first year of ownership has been very successful and we have strong conviction in the quality of the Trader Interactive business, the management team and its growth opportunities,” Carsales.com Managing Director and CEO Cameron McIntyre said in a statement. “Culturally, there is strong alignment between the Carsales and Trader Interactive teams and we are excited to be working more closely together to execute on our strategic objectives.”

Carsales.com was founded in 1997 and operates the largest online platform in Australia for automotive, motorcycle and marine classifieds listings.

“I’ve worked with the Carsales leadership team over the last 12 months and I have been extremely impressed. We can see how compatible we are from a culture and strategy perspective” Trader Interactive CEO Lori Stacy said in a statement. “The backing of Carsales, along with their domain expertise from their worldwide marketplace portfolio, will enable us to accelerate innovation across all of our verticals, while refining and improving both the buying and selling experiences for our consumers and dealers alike.”

Midlothian lighting company promotes exec to CFO

Midlothian-based lighting and home decor company Shades of Light promoted Sean Acton to chief financial officer on Thursday.

Acton was the company’s controller for about two years, and he will continue to oversee the accounting team until the company hires an accounting manager. Acton will take on oversight of the purchasing, inventory and production teams.

“Shades of Light has been around for a number of years,” Acton said, “and being part of something that’s continuing to grow year after year is exciting.”

The former CFO, Denise Burr, will continue to serve as chief operating officer for Shades of Light. She was serving as both CFO and COO, but the company is splitting the role because of its growth in headcount and complexity.

Before he joined Shades of Light, Acton was controller for Zamma Corp., and before that, he served as vice president of finance for Cerro Fabricated Products. Acton previously was the senior controller for Devils Backbone Brewing Co. Prior to that, he served as vice president of operations for Woolrich Inc., where he was also in charge of inventory and purchasing.

“Expanding into some of the other areas I’ve been responsible for outside of just finance is also exciting,” Acton said.

Acton holds a bachelor’s degree in accounting from Lock Haven University of Pennsylvania and an MBA from Bloomsburg University of Pennsylvania.

Founded in Richmond in 1986, Shades of Light is now headquartered in Midlothian and has a customer service call center, a warehouse and an outlet there, as well as a retail store in Richmond. The company has more than 200 employees and ships to every state.

Amazon has hired 3,500 HQ2 workers

Amazon.com Inc. has hired 3,500 of its 25,000 planned workers for HQ2, the tech behemoth’s $2.5 billion East Coast headquarters in Arlington. Meanwhile, construction on the two office towers for HQ2’s first phase, Metropolitan Park, is more than halfway complete, company representatives said during a site tour Wednesday.

Clark Construction Group LLC began work on the exterior facade in September.

 

 

Amazon has added about 500 HQ2 workers since September.

In 2019, the Virginia General Assembly passed an incentive package that would pay Amazon up to $550 million in grants for hitting annual goals toward hiring 25,000 HQ2 workers at a stipulated average annual wage by 2030. The company has about 2,500 positions that it is working to fill immediately, Amazon’s vice president of public policy, Brian Huseman, said Wednesday.

Clark Construction Group LLC Vice President Jeff King said that construction is on schedule for a 2023 completion.

 

 

Virginia Gov. Ralph Northam, who was present for the HQ2 progress tour, said, “We knew coming into our administration that we needed to diversify our economy. We have always been very dependent on the military and government contracting — and we always will be — but to bring in a company like Amazon was a large step moving forward in diversifying our economy in Virginia.”

“Met Park” will have two 22-story office buildings, 50,000 square feet of retail space, a roughly 2-acre park space and a 700-person meeting center that community groups will be able to use for free. The site is set to be completed by 2023, and Bethesda, Maryland-based Clark Construction Group LLC is on schedule for the project, Clark Construction Vice President Jeff King said Thursday.

As of mid-November, roughly 800 local employees are working at the site, Huseman said, and a new floor is constructed every 8 to 10 days. 

Last month, Clark Construction passed the halfway mark on its concrete operations, King said, adding that the company has poured 160,000 cubic yards of concrete since HQ2’s groundbreaking. Crews were working on the 15th level and were preparing to frame level 16 on Wednesday. In September, the contractor started on the exterior facade. King estimates that Met Park as a whole is about 40% finished.

Crews are excavating 10,000 cubic yards of dirt from the 2-acre park in HQ2 that will be open to the public.

The towers will include ground-floor retail space, with Amazon signing two retailers so far: Rako Coffee Roasters and pet care company District Dogs. Amazon anticipates having about seven to 12 retailers, including a child care provider, Amazon Senior Asset Manager Kristin Rincon said. The largest available space for retailers is about 12,000 square feet.

In the park space, crews are currently excavating about 10,000 cubic yards of dirt to make way for underground irrigation and foundation work. The park will include more than 300 trees and 50,000 plants, as well as dog runs, recreation areas, a playground and farmers’ markets.

Amazon HQ2’s proposed second phase, PenPlace, is expected to include three more 22-story buildings and the 370,000-square-foot, distinctively spiral-shaped “Helix” building. Arlington County supervisors will likely vote on whether to approve Amazon’s PenPlace plans in early 2022.

Kristi Smith, executive vice president of development for Bethesda, Maryland-based JBG Smith Properties, said that the developer’s housing portfolio in Amazon HQ2’s National Landing neighborhood now includes 2,586 existing apartments, 800 units under construction and a development pipeline with the potential for 2,500 units. JBG Smith is Amazon’s development partner on HQ2, managing the first phase of HQ2’s construction and leasing existing office space to Amazon for HQ2 workers during construction.

CarMax to acquire remaining stake in Edmunds

Goochland County-based used car giant CarMax Inc. announced Thursday that it had signed an agreement for full ownership of vehicle research website Edmunds.com Inc. in a cash and stock deal.

In January 2020, CarMax invested $50 million to acquire a minority stake in Santa Monica, California-based Edmunds. CarMax, a Fortune 500 company, will acquire the remaining shares of Edmunds for a purchase price that values Edmunds at $404 million. This transaction will be paid in a combination of cash and stock. The deal is expected to close in June. Edmunds will continue to operate independently.

“We are excited to bring the iconic Edmunds brand, history of innovation, and exceptional technology and creative talent into the CarMax family,” said Bill Nash, CarMax’s president and CEO, in a statement. “Our partnership to date has proven to be an outstanding combination as we’ve developed innovative products and advanced our shared commitment to delivering the highest quality online experience. We look forward to supporting and investing in Edmunds’ continued growth and are excited about the many opportunities ahead for both CarMax and Edmunds.”

Founded in 1993, CarMax is America’s largest used-car retailer, operating 220 stores. During the fiscal year ending Feb. 28, 2021, CarMax sold more than 750,000 used cars and more than 425,000 wholesale vehicles at its in-store and virtual auctions.

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Va. Beach-based company to acquire pet supply chain for $700M

Virginia Beach-based franchise business operator Franchise Group Inc. announced Monday it will acquire Livonia, Michigan-based Pet Supplies Plus for approximately $700 million.

The all-cash transaction is expected to close in March. The Pet Supplies Plus retail chain was founded in 1988 and sells pet supplies and services at its more than 500 locations, almost 60% of which are franchised. It currently has a backlog of 185 new locations and also provides delivery and pickup for its products.

“We look forward to welcoming Pet Supplies Plus, its management team, employees, franchisees and neighbors to Franchise Group when this transaction closes,” Franchise Group President and CEO Brian Kahn said in a statement. “PSP adds another franchise concept with strong unit economics, diversification into an economically resilient and secularly growing pet industry and a brand that has and will continue to experience robust unit expansion from its franchise system.”

Pet Supplies Plus estimates 2020 systemwide revenue as $1.2 billion. Franchise Group in 2019 reported $2.1 billion in revenue and focuses on buying and investing in franchises and franchise-able businesses.

“The additional scale and diversification that PSP will afford Franchise Group is expected to immediately lead to lower costs of capital and expanded free cash-flow generation,” Kahn said in a statement.

The Franchise Group last year acquired Buddy’s Home Furnishings, The Vitamin Shoppe, Sears Outlet and American Freight. The company has also entered into commitments arranged by J.P. Morgan, Citizens Bank and Credit Suisse for $1.3 billion in new term loan credit facilities to refinance the company’s term loan for Buddy’s Home Furnishings, American Freight and Liberty Tax businesses and provide financing for the Pet Supplies Plus transaction.

Riley Securities served as financial adviser and Willkie Farr & Gallagher LLP served as legal counsel to Franchise Group. Pet Supplies Plus used Pipe Sandler, North Point and Baird as financial advisers and Kramer Levin as legal counsel.

 

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Stockholders approve CarLotz merger

CarLotz Inc., the Chesterfield County-based consignment dealer of used cars, announced Friday that stockholders had given it the requisite approval to complete a proposed merger with Miami-based special purpose acquisition company Acamar Partners Acquisition Corp. that is expected to close on Jan. 22.

The merger is still subject to satisfaction of other conditions, including approval of the proposed merger by Acamar Partners stockholders at a Jan. 20 meeting.

Upon the consummation of the merger, CarLotz, which is valued at $827 million, will become a public company listed on Nasdaq under the ticker symbol LOTZ.

On Thursday, CarLotz announced the nomination of four new members to its board of directors upon the closing of the merger: Linda Abraham, Sarah Kauss, Kimberly Sheehy and James Skinner.

Founded in 2011 by Richmond-area entrepreneurs Michael Bor, Aaron Montgomery and Will Boland, CarLotz opened its first store in Midlothian and later expanded to Henrico County, Richmond, Chesapeake as well as North Carolina, Florida, Texas and Illinois. The company now has eight locations and sells vehicles via its online platform.

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CarLotz plans to go public on Nasdaq

Chesterfield County-based CarLotz Inc., a consignment dealer of used cars, announced Thursday it plans to go public and expand nationwide. 

CarLotz, which is valued at $827 million, will combine with Miami-based Acamar Partners Acquisition Corp., a publicly traded special purpose acquisition company, to make it a public company. At closing, the company name will remain CarLotz Inc. and will be listed on Nasdaq and trade under LOTZ. The company’s headquarters will remain in Chesterfield County following the merger.

CarLotz co-founder and CEO Michael Bor
CarLotz co-founder and CEO Michael Bor

Founded in 2011 by local entrepreneurs Michael Bor (now the company’s CEO), Aaron Montgomery and Will Boland, CarLotz opened its first store in Midlothian and later expanded to Henrico County, Richmond, Chesapeake as well as North Carolina, Florida, Texas and Illinois. The company now has eight locations and sells vehicles via its online platform.

CarLotz also has a commercial side, helping re-market cars for leasing companies, financial institutions and fleet management companies. In 2019, CarLotz made the Inc. 5000, ranking No. 435 on the list of the country’s fastest-growing private companies.

“We are thrilled to bring CarLotz and Acamar Partners together as one company, adding more fuel to the fire that we built when founding the business in 2011,” Bor said in a statement. “Our technology, omni-channel marketing and asset-light inventory sourcing model allows consumers to buy, sell, trade or consign vehicles online or in-person, creating a unique model to capture market share over the long term.”

CarLotz also plans for increased inventory from existing and new corporate vehicle sourcing partners, new technology platforms and an increased focus on marketing as part of its nationwide expansion plan, according to a company statement. 

“On top of this great combination of attractive market dynamics and a differentiated business model, CarLotz benefits from multiple short and long-term growth opportunities driven by its ongoing nationwide expansion, which Acamar Partners expects to support through this transaction,” Acamar Partners CEO Luis Solorzano said in a statement.

Groups including Fidelity Management & Research Co. LLC, KAR Global, McLarty Diversified Holdings, Rick Wagoner (the former CEO of General Motors) and TRP Capital Partners have committed to invest $125 million in common stock at $10 per share.

CarLotz used Deutsche Bank Securities Inc., Barclays plc and William Blair & Co. for financial and capital markets advising and Freshfields Bruckhaus Deringer LLP as legal counsel. Acamar Partners’ advisers include The Goldman Sachs Group Inc. and Simpson Thacher & Bartlett LLP.

 

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280 Va. companies ranked on Inc. 5000 list

This year, 280 Virginia companies are ranked on the most recent list of the nation’s fastest-growing, privately held companies — the Inc. 5000, released Wednesday morning.

Leading the pack in Virginia at spot No. 75 is Sassy Jones, an online jewelry and accessory retailer based in Richmond. Founder and owner Charis Jones founded the retailer of bright, bold and often sparkly jewelry  in 2013, working from her dining room table and her minivan.

“I’ve always had an affection for beautiful jewelry and accessories that allowed me to express myself in a meaningful way,” Jones says in the story of her company. “It felt crazy at the time but I knew Sassy Jones was my opportunity to share that affection with other women, while also giving them a boost in their self-confidence.”

Jones told Inc. magazine that switching to e-commerce helped the company grow by 4,515%.

“Sassy Jones is definitely growing the most in e-commerce,” Jones told Inc. magazine. “We were not born in e-commerce — we were born actually doing trade shows. But the last three years we’ve been able to grow over 300% year over year, focusing on e-com only.”

Jones said in a virtual forum Wednesday morning that it has long been a dream of hers to be on the list.

“Starting out as a budding entrepreneur, this was a huge goal,” Jones said, emphasizing the fact that her small, Black woman-owned business had ranked on the list this year.

The only other company in Virginia to be included in the top 100 spots was Gravy Analytics, a Sterling-based technology company that specializes in location data and intelligence. The company was co-founded by CEO Jeff White, Chief Technology Officer Guy DeCorte and Data General Manager Aaron Vance. The company had a 3,623% growth rate, according to Inc. magazine.

Virginia companies on the Inc. 5000 list this year had a median growth rate of 166% and brought in $13.9 billion in total revenue. Collectively, the companies have added 22,132 jobs to the state economy during the last three years. Out of this year’s 281 Virginia-based honorees, 201 were repeat winners.

Among Virginia’s neighboring states, North Carolina has 139 companies on the list and Maryland has 148. 

The top 25 Virginia companies on the Inc. 5000 list include (in order of ranking):

  • No. 75: Sassy Jones, 4,515%, retail, Richmond
  • No. 93: Gravy Analytics, 3,623%, software, Sterling
  • No. 146: Broadleaf, 2,583%, government services, Manassas
  • No. 150: SNA International, 2,544%, government services, Alexandria
  • No. 155: Lateetud, 2,503%, IT system development, Ashburn
  • No. 160: Spinnaker Consulting Group, 2,419%, business products and services, Richmond
  • No. 189: Capital Telecom Services, 2,198%, telecommunications, Sterling
  • No. 191: FITT Scientific, 2,196%, government services, Colonial Heights
  • No. 216: Core One Solutions, 2,009%, government services, Sterling
  • No. 221: Urgently, 1,971%, logistics and transportation, Vienna
  • No. 225: Saliense Consulting, 1,956%, government services, McLean
  • No. 263: Sun Tribe, 1,699%, energy, Charlottesville
  • No. 274: Invictus International Consulting, 1,629%, government services, Alexandria
  • No. 303: B3 Group, 1,490%, government services, Herndon
  • No. 318: The Building People, 1,434%, real estate, Leesburg
  • No. 328: JDSAT, 1,385%, business products and services, Tysons
  • No. 333: Royce Geospatial Consultants, 1,369%, government services, Arlington
  • No. 356: SMARTEDGE IT, 1,270%, software, Herndon
  • No. 358: Objective Area Solutions, 1,259%, business products and services, Arlington
  • No. 368: Numero Data, 1,236%, software, Herndon
  • No. 381: SECURE PLANET Inc., 1,201%, government services, Arlington
  • No. 390: Aptive Resources, 1,189%, business products and services, Alexandria
  • No. 407: Kern Technology Group, 1,127%, government services, Virginia Beach
  • No. 408: Pathfinder Consultants, 1,127%, IT management, Sterling
  • No. 428: Capitol Bridge, 1,069%, government services, Arlington

 

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