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byline: Courtney Mabeus-Brown

Bowman acquires Maryland engineering firm

Reston-based Bowman Consulting Group Ltd. has acquired Rockville, Maryland-based Richter & Associates, a dry utility infrastructure engineering firm, the company announced Tuesday.

Terms of the deal were not disclosed.

Richter has 28 employees. The company works with private and public clients as well as utilities to design, develop and implement natural gas, electric and telecommunications infrastructure. The firm was founded by CEO Steve Richter in 1989, according to his LinkedIn account. Richter, along with other senior managers of the company, will become part of the Bowman management team.

“Evolving complexity of end use, combined with increasing load demand, is forcing utilities to rethink their approach to system extension, capacity management, interconnectivity, and last-mile design,” Bowman CEO Gary Bowman said in a statement. “Steve has built a business uniquely positioned to address the need for integrated dry utility engineering inherent in all infrastructure projects. Every structure built requires coordinated orchestration of last-mile utility engineering and interconnection with multiple utility providers. Richter has built a solid foundation of experience and an impeccable reputation from which we can grow this service nationally.”

Bowman expects the Richter acquisition to contribute approximately $5.5 million of annualized net service billing.

“As development issues relating to electric, natural gas, telecommunications, alternative energies, streetlighting and traffic signaling became more complex, development costs escalated and frustration increased,” Richter said in a statement. “An opportunity presented itself for a firm to navigate and intercede with utilities and public agencies on behalf of infrastructure planners, developers  and owners. … We feel that this is the right time to join with a bigger firm to expand our reach and breadth of services and accelerate our growth.  We are excited to become part of Bowman and look forward to adding value to their national platform.”

Bowman has 1,700 employees in more than 70 offices across the country and provides planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services. The company went public in May 2021 and has acquired 17 companies across the country as it continues to look for strategic growth opportunities.

 

Hurt & Proffitt acquires Gretna civil engineering firm

Lynchburg-based civil engineering firm Hurt & Proffitt (H&P) has acquired Gretna-based Reynolds-Clark Development, according to a news release.
H&P Chief Financial Officer Matthew Leslie declined to disclose the value of the deal. The company has added Reynolds-Clark’s five employees to its workforce, bringing its total personnel to about 150. Reynolds-Clark will be now be known as Hurt & Proffitt and remain in Pittsylvania County. The company’s founders, President Gretchen Clark and Vice President Tim Reynolds, have been named vice presidents at H&P. Clark will also serve as director of site permitting, and Reynolds will add director of land development to his responsibilities.
Both companies serve clients throughout Virginia and North Carolina.
“We are excited about the opportunities that the combined forces of our two firms will hold for the future,” H&P President Wiley “Bif” Johnson said in a statement. “Our industry is rapidly changing and growing. This acquisition will allow us to meet those changes head-on and allow us to broaden our services.”
Founded in 2004, Reynolds-Clark specializes in site and utility design, stormwater management and environmental planning.
“Moving forward, clients will continue to maintain relationships with the individuals they have worked with in the past,” Clark said in a statement.
Reynolds said that the combination of the firms will give H&P “more depth” for clients.
H&P was started in 1973 and also has offices in Blacksburg, Roanoke and Wytheville.

U.Va. Physicians Group names new CEO

A University of Virginia School of Medicine graduate will lead the nonprofit organization that provides clinical and administrative services in support of U.Va. Medical Center as well as his alma mater.

Dr. J. Scott Just will take over as CEO of UVA Physicians Group May 30, according to a news release. Just succeeds Corey Feist, who stepped down Dec. 31, 2021.

Just has served as president of Fishersville-based Augusta Medical Group and vice president of Augusta Health since 2018. His responsibilities included managing clinics, recruiting physicians and other providers and improving access to care. Before taking on those roles, he served as associate chief medical officer and chair of the Department of Emergency Medicine at Augusta Health, as well as president of Augusta Emergency Physicians. Just also has more than two decades of experience as an emergency medicine physician serving patients in Central Virginia.

“As a physician-leader, Dr. Just is widely respected and recognized as an astute strategic planner who drives operational excellence through effective consensus building,” Drew Holzwarth, chairman of the UVA Physicians Group’s board of directors, said a statement. “He is committed to outstanding patient care and responsible stewardship of resources, and our board is excited to welcome him to UVA Health’s leadership team.”

In addition to the medical center, the physicians group operates at clinical practice group locations throughout Charlottesville and at 24 primary and specialty care clinics throughout Central and Northern Virginia. The group has 966 employees and dually employs about 950 clinical faculty members with the U.Va. School of Medicine.

“Dr. Just’s blend of experiences as a frontline patient-care provider and as a healthcare leader makes him an ideal fit for this vital leadership role at UVA Health,” Dr. K. Craig Kent, UVA Health’s  CEO and executive vice president for health affairs, said in a statement. “I look forward to having him join our team to help implement our strategic plan and fulfill our mission of transforming health and inspiring hope for all Virginians and beyond.”

Just earned a bachelor’s degree in chemistry from Hampden Sydney College before receiving his medical degree at U.Va in 1996, according to his LinkedIn account. He completed his residency in emergency medicine at U.Va. Medical Center, where he also served as chief resident in the Department of Emergency Medicine. Just later received his MBA from U.Va.’s Darden School of Business in 2014. Just is a member of the American College of Healthcare Executives, a fellow with the American College of Emergency Physicians and a recent graduate of the American Hospital Association’s Next Generation Leaders Fellowship.

“I am so excited to be rejoining the place where I began my healthcare career and to continue serving the communities I know so well,” Just said in a statement. “U.Va. is home to so many wonderful physicians and health care providers, and I am excited to work alongside them and support them as we carry out our mission to serve patients across the commonwealth.”

 

Raytheon receives $1.2B missile contract

Arlington County-based Raytheon Technologies Corp. will produce its Patriot missile systems for Switzerland under a $1.2 billion U.S. Army foreign military sales contract.

The contract, announced by the Pentagon March 28, includes five Patriot units as well as the company’s Guidance Enhanced Missile, or GEM-T, a Patriot missile variant used to defeat tactical ballistic missiles, cruise missiles and enemy aircraft, Raytheon said in a news release Monday.

With the sale, Switzerland becomes Raytheon’s 18th global Patriot buyer. Work is estimated to be completed Dec. 31, 2032.

“Designed specifically to counter today’s threats, Patriot is the proven, reliable ground-based air defense capability for the U.S. Army and now 17 international countries,” Tom Laliberty, president of land warfare and air defense at Raytheon, said in a statement. “Switzerland now joins this global Patriot user community and will benefit from unparalleled commonality, cooperation, experience and cost sharing over the weapon system’s life cycle.”

Raytheon’s Army contract was followed March 30 with news that it had received a $650 million contract from the Navy to produce and deliver the third lot of the service’s Next Generation Jammer Mid-Band. The system is part of a larger system meant to augment and replace the service’s legacy ALQ-99 Tactical Hamming System used on the EA-18G Growler for airborne electronic attack.  Under the contract, Raytheon will produce 15 ship sets, including 11 for the Navy and four for Australia, as well as associated spares, support equipment, associated data and non-recurring engineering. Work is expected to be completed in April 2024, the Pentagon said.

Arko tries to keep $1.4B TravelCenters of America bid alive

Updated 5:30 p.m. March 28

Henrico County-based Fortune 500 convenience store holding company Arko Corp. is rivaling British oil and gas giant BP in a $1.4 billion bid to acquire Westlake, Ohio-based TravelCenters of America Inc., a publicly traded convenience store chain with 281 retail stores and roadside restaurants in 44 states.

On Monday, Arko sent a letter to the TravelCenters of America’ board asking that it reconsider its acquisition proposal, which Arko called “obviously superior” to the agreement the North American subsidiary of BP reached in February to acquire TravelCenters of America for $1.3 billion, or $86 cash per share. The transaction was unanimously approved by TravelCenters’ board, the company said in a Feb. 16 news release.

Arko, the holding company for convenience store chain GPM Investments LLC, followed up on March 14 with its own unsolicited offer of $92 per share, a deal that was to be funded by a combination of cash, external financing and credit, the company said Monday, identifying itself in U.S. Securities and Exchange Commission filings discussing the deal as “Party G.” On March 22, Arko’s offer was unanimously rejected by TravelCenters’ board on the basis that it “does not constitute a Superior Proposal and could not reasonably be expected to lead to a Superior Proposal,” according to SEC filings. TravelCenters cited findings of its independent directors in executive session, including that “Party G would require significant third-party financing and there was no firm commitment from a potential financing source” amid current economic uncertainty.

Arko on Monday pushed back against those assertions in a letter signed by Chair and CEO Arie Kotler and General Counsel Maury Bricks to TravelCenters’ board, urging it to “engage with, rather than exclude” the company in the sale process. Arko’s offer represents $100 million in additional value to shareholders, and the company cited its record of 23 transactions in the last decade, including acquisitions valued at about $900 million in the last 18 months that have been financed through private equity firm Oak Street Capital.

“We are highly confident in our ability to finance the transaction, and our proposal includes no financing-related conditions. We have obtained assurances from Oak Street Capital to finance a portion of the necessary funds,” Kotler and Bricks wrote. “When TravelCenters engages with Arko, we and Oak Street Capital would be happy to discuss the financing with you.”

Neither Arko nor TravelCenters responded to requests for comment from Virginia Business on Monday. However, on Tuesday, TravelCenters reiterated its stance in a news release, stating that Arko’s offer was neither superior to the agreement it made with BP, nor likely to become superior, and cited what it referred to as “a sub-investment grade credit rating” that was not attractive to Service Properties Trust, a landlord of TravelCenters’ properties, which has a 7.8% majority stake in the company.

TravelCenters of America has 18,000 employees and reported $10.8 billion in total 2022 revenue. Last year, Arko made the Fortune 500 list for the first time and reported $301 million in adjusted earnings, before interest, taxes, depreciation and amortization (EBITDA).

 

Youngkin announces $8.1M in GO Virginia grants

A variety of projects around the state intended to spur economic and workforce development will get a boost from $8.1 million in state GO Virginia grants, Gov. Glenn Youngkin announced Friday.

The 17 projects are expected to add hundreds of jobs. Nearly $4.8 million will fund two Virginia Tech projects, including one  expected to build a talent pipeline for the emerging nanotechnology industry in Northern Virginia and another to transition to the production of green hydrogen in Hampton Roads.

Two other projects, totaling $150,000, will study the feasibility of developing multiple small modular nuclear reactor sites in Southwest Virginia, as well as the preparation of a supply chain report that will be used to identify businesses that can be retooled or recruited to provide manufacturing jobs to support those reactors. Youngkin has set a goal of developing a small modular reactor in Virginia within the next decade.

“GO Virginia allows us to invest in key projects that address regionally identified opportunities while fostering collaboration for economic growth between the private and public sectors,” Younkin said in a statement. “These projects exemplify the innovative partnerships that GO Virginia was designed to promote, and will advance Virginia’s position in critical industries such as life science and energy, as well as leverage emerging opportunities in semiconductor manufacturing.”

The largest award, $3.3 million, will go to the Virginia Nanotechnology Networked Infrastructure project in Northern Virginia. The project will connect higher education institutions with existing nanotechnology facilities across the state to a main hub at Virginia Tech by an advanced cloud-based system. The project will train 600 students, award 500 certificates and create 80 internships.

Other projects include funding for a Center for Entrepreneurship in Lynchburg; funding for pre-construction activities for a wet lab incubator and accelerator in Charlottesville; support for cybersecurity training in Caroline, King George and Stafford counties; and money to support a cybersecurity/data analytics/modeling and simulation cluster and an unmanned systems and aerospace cluster in Hampton Roads. A full list of the projects is available from the state Department of Housing and Community Development.

GO Virginia is a bipartisan, business-led state initiative to foster private-sector growth and job creation through state incentives for regional collaboration by business, education and government. A state GO Virginia board makes funding decisions and distributes Virginia Growth and Opportunity Fund monies to projects recommended by the nine regional GO Virginia councils.

ASRC Federal to pay $350M for SAIC’s logistics biz

Reston-based Science Applications International Corp. (SAIC) has agreed to sell its logistics and supply chain management business to Reston-based ASRC Federal Holding Company LLC for $350 million in cash, both companies announced Thursday.

About 240 SAIC employees will transition to ASRC Federal upon completion of the deal, which is expected to close in spring 2023.

“Today’s announcement represents a milestone in SAIC’s priority to shape our portfolio and advance our strategy,” SAIC CEO Nazzic Keene said in a statement. “The agreement allows for seamless transition and continued support for the logistics and supply chain management business and their important customer missions, while enabling SAIC to concentrate resources in our growth and technology accelerant areas of focus. These areas include secure cloud, enterprise IT and systems integration and delivery, which now account for more than 30% of SAIC revenue.”

SAIC’s logistics and supply chain solutions are used by the Defense Logistics Agency, which provides services to Department of Defense agencies, including the Army, Air Force and Navy. The business is a “natural fit” for ASRC Federal’s base operations support, which provides procurement, logistics and warehousing services at military locations throughout the company, ASRC said in a news release.

“This acquisition provides another channel for growth by further diversifying our robust set of capabilities,” ASRC Federal President and CEO Jennifer Felix said in a statement. “I am excited to welcome this mission-focused team who has earned a best-in-class reputation for delivering innovative solutions to their customers. Their work directly impacts the readiness of America’s warfighters, and they will bring tremendous capability to both new and existing ASRC Federal customers.”

ASRC Federal is a federal government services subsidiary of Arctic Slope Regional Corp., an Alaska Native corporation. SAIC employs more than 25,000 people and reported $7.4 billion in revenue in fiscal 2022.

Branch Group promotes SVP to chief HR officer

Roanoke-based construction firm The Branch Group Inc. has promoted Tina Pfalzgraf to chief human resources officer, the company announced Wednesday.

Pflazgraf previously served as senior vice president of human resources. Her department established corporate initiatives in employee development, retention, benefits and recruitment that resulted in record employee retention rates and record employee satisfaction survey results. Prior to joining Branch in early 2022, Pfalzgraf was senior director of human resources operations for the advancing national security business unit at Dallas-based Jacobs, as well as serving in human resources roles for Centreville-based Parsons Corp. and Englewood, Colorado-based CH2M.

“Tina has done an outstanding job in the areas of employee development, retention and recruitment,” Branch Group CEO Donald Graul said in a statement. “Her department reorganization and focus on the employee experience, optimizing the HR process and procedures, workforce development and employee rewards and recognition programs will further drive our record high employee engagement results.

Pfalzgraf will also serve on several Branch board of director committees.

The employee-owned Branch has total revenues of nearly $480 million and a workforce of more than 1000 employee owners.

GDIT lands $1.8B Army flight sim contract

Falls Church-based General Dynamics Information Technology Inc. will provide flight simulation training services to the Army under a nearly $1.8 billion contract announced, the Pentagon announced Thursday.

Work is estimated to be completed March 31, 2035, with locations and funding to be determined with each order.

Also on Thursday, GDIT announced it received two contracts from the U.S. Environmental Protection Agency valued up to $380 million.

GDIT is a business unit of Reston-based Fortune 500 aerospace and defense contractor General Dynamics Corp. General Dynamics employs more than 100,000 people worldwide and in 2022 reported $39.4 billion in revenue, an increase of 2.4% from 2021.

Capital Square launches subsidiary to oversee multifamily portfolio

Glen Allen-based real estate company Capital Square has launched a wholly-owned subsidiary to oversee management of the company’s multifamily portfolio, the company announced March 20.

Capital Square Living will oversee off management of the company’s 55 residential communities, including 14,000 units across the Southeast and Texas. The subsidiary currently has 20 employees and is expected to grow to more than 300 when all properties are brought on board. Corporate employees are based in Richmond.

Capital Square was founded in 2012 with its development arm coming along in 2019 followed by the creation of Capital Square Apartment REIT in 2021 and the launch of its private equity group in 2022.

“Capital Square Living is the final step — creating a competitive advantage by providing property management services for our growing portfolio,” Capital Square founder and Capital Square co-CEO Louis Rogers said in a statement.

“Capital Square is now a vertically integrated real estate company,” Rogers said.

Gus Remppies is president of Capital Square Living.

Capital Square Living is led by President Gus Remppies, who has more than three decades of experience working with multifamily properties. Remppies joined Capital Square Jan. 1. He previously served as president, chief operating officer, chief administrative officer and chief investment officer of Landmark Apartment Trust, formerly known as Grubb Ellis Apartment REIT, prior to its acquisition in 2016 by Starwood Capital Group and Milestone Apartments Real Estate Investment Trust in an all-cash transaction valued at approximately $1.9 billion. Under Remppies’ leadership, Landmark’s multifamily portfolio included 24,000 apartment units throughout the South and Texas. Remppies also served as executive vice president of Grubb & Ellis Residential Management and as a senior executive with Cornerstone Realty Income Trust Inc., where he oversaw the acquisition and development of approximately 30,000 apartment units.

“Capital Square Living will deliver superior property management services by providing a best-in-class experience for our residents, exceptional living and outstanding customer service,” Remppies said in a statement. “We are not simply managing apartments; we are providing quality residences and establishing livable communities for thousands of residents in the vibrant Southeast.”

Capital Square Living will begin onboarding communities in April. Management services will include operations, maintenance, employee development and training, customer service, revenue management, marketing, budgeting, leasing and resident retention.

Capital Square has completed more than $7.5 billion in transaction volume since its founding in 2012.