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Canadian company to spend $22.8M to expand to Suffolk

Toronto-based Automatic Coating Ltd., which provides advanced custom powder, liquid, and blasting, will invest $22.8 million to open its first U.S. location in Suffolk, adding an estimated 50 jobs, Gov. Glenn Youngkin announced Thursday.

Virginia competed with Florida for the project. The move supports an existing contract with the U.S. Navy, and the company plans to expand with additional industrial and commercial customers in the U.S. The company contracts with the Navy to use its patented process for corrosion coating on a variety of components, including water tight doors, louvers and hatches.

“I am proud that another international company has selected the commonwealth as home to its first U.S. operation, again reinforcing the strategic advantages a Virginia location offers,” Youngkin said in a statement. “Hampton Roads boasts a robust workforce that includes a high veteran and exiting military population to supply Automatic Coating with a pipeline of talent to serve its contracts with the U.S. Navy, strengthening the region’s reputation as a hub for innovation in defense.”

Founded in 1954, Automatic Coating also provides field corrosion coating and offers mobile field coating services, coating removal, mobile blasting, pipe rehabilitation and other services. Automatic Coating has a patented process for corrosion coating.

“This is the next step in the evolution of our company and will deliver a local and made-in-America presence to our patented Tidal Coat system.  This will assist the U.S. Navy in their North Star 75 project and will save the Navy millions of dollars in cost avoidance and extended life cycle of parts,” Jocelyn Bamford, CEO of Automatic Coating Limited U.S.A., said in a statement. “We could not have found a better support in the Hampton Roads Alliance, the City of Suffolk and the state of Virginia. We look forward to being an integral part of [the] community and contributing to job growth and prosperity in the region.”

Announced in January, North Star is a Navy initiative to have 75 surface ships mission-capable on any given day as part of a readiness drive. That number represents nearly half of the Navy’s total surface fleet, according to Defense News.

The Virginia Economic Development Partnership worked with Suffolk and the Hampton Roads Alliance to secure the project, and Youngkin approved a $200,000 grant from the Commonwealth’s Opportunity Fund to assist Suffolk with the project. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

Three Va. universities land on top patents list

Three Virginia research universities have made the National Academy of Inventors’ new list ranking the nation’s universities that were granted the most patents in 2022.

The University of Virginia, Virginia Commonwealth University and George Mason University each made the list released Aug. 30, ranking 43rd, 86th and 91st respectively. U.Va. had 52 patents issued in 2022; VCU had 17 patents and GMU had 15.

The National Academy of Inventors announced the list Tuesday using calendar year data gathered by the U.S. Patent and Trademark Office. It is intended to “highlight and celebrate U.S. universities that play a large role in advancing innovation and invention in the United States” and follows NAI’s Top 100 Worldwide Universities list, which has been published since 2013.

“As a U.S.-based national academy, it is important to us not only to showcase innovation happening on the broader world stage, but here at home as well. Invention has been part of the American experience since the country’s inception, with intellectual property being protected in the Constitution,” NAI Executive Director Jamie Renee said in a statement. “Innovation has always been at the heart of U.S. culture, and the Top 100 U.S. Universities list allows us to recognize and celebrate the commitment these universities have to the American tradition of invention and protection of IP.”

The University of California topped the U.S. universities list as well as the worldwide list of institutions, ranking No. 1 in calendar year 2022 with 570 patents, followed by Massachusetts Institute of Technology with 343 patents, ranking second on both lists. In Virginia, only U.Va. made the 2022 worldwide list, ranking No. 65.

Richard Chylla, executive director of U.Va.’s Licensing and Ventures Group, told Virginia Business that most of the university’s patents are in the life sciences, mechanical engineering and biomedical engineering, including medical devices — all fields on which U.Va. focuses a majority of its research. Patents, he added, can take between two and five years from filing to issuance.

Patents provide incentives for companies to license patent rights, and that money is reinvested in university research enterprises; licensing fees generate between $4 million and $10 million for U.Va. annually, Chylla said.

“It’s part of filling the obligation to the public; it’s a public good,” Chylla said. “So we’re trying to take the money that is spent on research at the university, most of which comes from federal sources, and we’re trying to get it in the hands of the public.”

U.Va. filed for 240 patents in fiscal year 2022, according to U.Va’s Licensing and Venture Group 2022 annual report. Granted patents included a method and system for enhanced deep brain imaging visualization, methods and systems in the treatment of diabetes, and molecular genetic approaches to treating and diagnosing alcohol and drug dependence. U.Va. also struck 85 licensing deals with 45 industry partners, down from 92 in fiscal year 2021.

According to information shared with Virginia Business from its yet-to-be-published 2023 annual report, U.Va. received 46 patents during fiscal year 2023, which concluded June 30, in areas including medical imaging and treatments for melanoma and other cancers.

VCU, meanwhile, filed for 144 patents last year and was issued 20, three of which were issued in Japan and Europe, according to its 2022 annual report, which focuses on the July 1, 2021-June 30, 2022 fiscal year.  Patents included devices and methods for repairing tissue damage, as well as processes involved with the treatment of sickle cell disease and detecting fungus in the gut. The university generated $3.12 million in licensing revenue.

“Transformational research and innovation happens every day at VCU, and it is due to our collaborative and transdisciplinary approach that we are the recipients of this recognition from the NAI,” P. Srirama Rao, VCU’s vice president for research and innovation, said in a statement. “The impact of VCU’s novel innovations and rapidly growing research enterprise is felt locally, nationally and globally as it continues to work to address society’s most pressing grand challenges.”

VCU’s research is driven by the One VCU Research Strategic Priorities Plan, which was launched in fiscal 2022 and outlines four research priorities, including enriching the human experience, establishing a just and equitable society, optimizing health and supporting sustainable energy and environments. The university says it has already met goals of becoming a top 50 U.S. research university and receiving more than $400 million in sponsored research funding, which it aimed to meet by 2028.

For fiscal year 2021, VCU landed at No. 50 on the National Science Foundation’s ranking of expenditures on research and development by public universities. U.Va. ranked No. 30, followed by Virginia Tech at No. 38. George Mason ranked No. 77, and Old Dominion landed at No. 136.

George Mason did not respond to a request for additional information by press time.

The Tampa, Florida-based NAI was founded in 2010 and is a member organization comprising U.S. and international universities, government and nonprofit research institutes with more than 4,000 individual inventor members and fellows spanning more than 250 institutions.

ManTech completes Definitive Logic acquisition

Herndon-based ManTech International has completed its acquisition of Arlington County-based Definitive Logic.

ManTech provides technology solutions for U.S. defense, intelligence and federal civilian agencies. The company announced the completion of the deal, first announced Aug. 1, on Tuesday.

Terms of the deal were not disclosed. The acquisition is expected to add 330 employees to the contractor’s workforce and expand the federal contractor’s suite of cloud, cyber, DevSecOps (development, security and operations), data engineering and artificial learning/machine learning capabilities as well as technology partnerships.

“The acquisition of Definitive Logic builds upon ManTech’s consultative services in bringing digital to the mission in support of our customers,” ManTech CEO and President Matt Tait said in a statement. “ManTech and Definitive Logic share a passion for people and innovation that helps our customers transform and advance missions. I am pleased to welcome this exceptional team of colleagues who share our steadfast commitment to supporting our customers.”

Definitive Logic will maintain its Arlington office, and co-founder and CEO Paul Burke will lead the team and also be part of ManTech’s growth and innovation organization.

“We are excited for this next chapter as a ManTech company and the new opportunities to accelerate transformation across the federal market,” Burke said in a statement. “Together we will serve clients with integrity and ingenuity, bringing our unique capabilities to securing the future.”

Sandpaper manufacturer to expand in Va. Beach

Hermes Abrasives USA, the U.S. subsidiary of Hamburg, Germany-based Hermes Abrasives, will invest $5.6 million in a Virginia Beach expansion that will add an estimated 30 jobs, Gov. Glenn Youngkin announced Wednesday.

Hermes Abrasives manufactures coated and bonded abrasives and grinding tools. The company will return its narrow belt production line to its Virginia Beach facility, which moved to Mexico in 2019, and will add new manufacturing assembly lines and machinery to improve efficiency and output, Hermes Abrasives North America President Brad Sorgen told Virginia Business. The transfer of work from Mexico to Virginia will be complete by the end of September, he added.

Virginia competed with Mexico for the project. Hermes Abrasives USA has had a Virginia Beach facility since 1981, and it manufactures 60% of Hermes’ product portfolio at that location, its U.S. headquarters. It is also the flagship facility for the company’s industrial-scale sandpaper product, primarily used in the automotive and woodworking industries.

“Hermes Abrasives has demonstrated a 40-plus year commitment to Virginia, and the return of its belt production line from Mexico to Virginia Beach sends a clear message that the commonwealth has the right combination of assets for manufacturers to locate and grow,” Youngkin said in a statement. “Hampton Roads offers the skilled workforce, logistics advantage and business climate that international leaders like Hermes need to thrive, and we look forward to their continued success in the commonwealth.”

Sorgen said the positions being added include operators, assembly technicians and associated administrative staff to manage growing business operations at Hermes’ North American headquarters. The company has a manufacturing or sales presence with major offices in Canada, the United Kingdom, France, Austria, Bulgaria, Hungary, Poland, Germany, Singapore, China, Mexico and Virginia.

“Hermes Abrasives has proudly called southeastern Virginia home for over 40 years. Though we have grown and changed with the times, we are excited about the potential expansion and development that we have planned over the next five years,” Sorgen said in a statement. “With nearly $6 million in planned capital investment, Hermes is looking to increase its overall manufacturing footprint to better service its hundreds of customers throughout North America.”

The Virginia Economic Development Partnership worked with the City of Virginia Beach and the Hampton Roads Alliance to secure the project for Virginia and will support Hermes Abrasives’ job creation through the Virginia Jobs Investment Program, which provides consulting and funding to companies creating jobs to support employee recruitment and training activities.

Maximus fined by SEC for proxy, reporting violations

Tysons-based federal technology contractor Maximus will pay $500,000 in civil penalties to settle a charge that it failed to disclose it had employed the siblings of one of its executive officers.

According to a settlement announced by the U.S. Securities and Exchange Commission Monday, Maximus appointed a business segment leader and longtime employee as an executive officer effective Oct. 1, 2019. That person, who is unnamed in the administrative proceeding, also had two siblings that were longtime employees — also unnamed — and each received an annual compensation of $120,000 or more, amounts in excess of SEC disclosure regulations. Maximus failed to disclose the relationship on annual reports in fiscal years 2019 through 2021 as well as in proxy statements filed from January 2020 through January 2022. Maximus was required to report the relationship on forms because of the siblings’ direct or indirect material interest in the transactions, according to the filing.

Maximus did not admit or deny the allegations made by the SEC and cooperated with the SEC’s investigation.

In an emailed statement to Virginia Business, company spokesperson Eileen Cassidy Rivera said Maximus is “pleased we were able to resolve this matter on an amicable basis with the SEC.”

Maximus was one of 36 Virginia companies to make the 2023 Fortune 1000 list, placing at No. 679. The company has more than 50,000 employees worldwide and runs Medicare and Affordable Care Act customer help lines.

SAIC lands $574M Space Force radar systems contract

Science Applications International Corp. will maintain and modify the U.S. Space Force’s ground-based radar sensor systems under a $574 million contract, the Reston-based Fortune 500 contractor announced Monday.

Under the Ground-Based Radar Maintenance and Sustainment Services (GMASS) contract, announced Aug. 29 by the Pentagon, SAIC will provide ongoing sustainment, modifications and improvements to the Space Force’s Upgraded Early Warning Radars (UEWR) and the Perimeter Acquisition Radar Attack Characterization System (PARCS) radars and associated systems and equipment. Capable of detecting ballistic missile attacks and conducting space surveillance and satellite tracking, the early warning radars are located across the U.S. and Europe; PARCS, located at Cavalier Air Force Station in North Dakota, watches for sea-launched and intercontinental ballistic missiles, collects missile warning data and serves a secondary role of providing data about space launches and orbiting objects for the U.S. Space Surveillance Network.

“SAIC’s continued work with Space Force is a true testament to the valuable support we bring to the agency on its modernization journey,” Michael LaRouche, president of national security and space at SAIC, said in a statement. “Our integrated roadmap and work alongside our partners will advance innovation and encourage customer mission success. We look forward to showcasing our comprehensive depth of expertise and capabilities and further aligning to the GMASS key objectives and needs.”

SAIC has also named Melbourne, Florida-based L3Harris as team member on the contract, participating in an ongoing partnership across the GMASS program.

Work on the contract is expected to be complete by March 24, 2030.

Alexandria’s SPA acquires aerospace co.

Alexandria-based Systems Planning & Analysis, a portfolio company of investment firm Arlington Capital Partners, has acquired Florida aerospace engineering company PRKK.

Terms of the deal, which was announced Wednesday, were not disclosed. Founded in 2006 with primary work locations in Virginia and Colorado, PRKK has about 125 employees who will become part of SPA’s space and intelligence division. PRKK’s clients include the Office of the Secretary of Defense’s Strategic Capabilities Office, the U.S. Space Force and intelligence community customers.

The acquisition expands SPA’s abilities in the space and intelligence sectors.

“PRKK is well known for providing rapid warfighter solutions and concepts, systems engineering, threat intelligence analysis, cyber concept development and tailored analytics,” SPA CEO Rich Sawchak said in a statement. “We couldn’t ask for a better fit, and we warmly welcome PRKK’s highly qualified and experienced subject matter experts into the SPA family.”

Founded in 1972, SPA provides strategic advising, systems engineering, modeling and simulation, advanced analytics, industrial policy and program management solutions to government and defense customers in the United States as well as to its allies. The company has about 1,700 employees globally, including about 800 in Virginia.

Arlington Capital Partners acquired SPA in 2021, combining it with another portfolio company, McLean-based government contractor MCR, forming a company with more than $350 million in revenue.

Leidos receives $918M Homeland Security contract

Reston-based Fortune 500 contractor Leidos has received a follow-on contract valued up to $918 million to support and enhance the U.S. Department of Homeland Security’s networks, the company announced Thursday.

The Homeland Enterprise Information Technology Secure Services and Support (HEITS) contract was awarded Aug. 15. The cost-plus-award-fee, single-award contract has a one-year base and six additional one-year options that bring the contract value up to $918 million if all are exercised.

Under the contract, Leidos will provide program management, operations and maintenance, systems engineering, training, information assurance and classified and unclassified cloud computing capabilities integration and services to DHS. The work is expected to enable continued evolution of the Homeland Secure Data Network and the department’s classified local area network. The company expects to also enhance or replace existing network components with newer technologies to maximize performance. Additionally, Leidos will use an AI for an IT operations platform to respond to operational anomalies and help eliminate issues before users are impacted.

The award continues Leidos’ work for DHS under the Secure Enterprise Network Systems, Services & Support (SENS3) contract. Under SENS3, Leidos helps the agency maintain a secure classified information sharing infrastructure that is interoperable across DHS and partner classified environments.

“This contract continues our strong relationship with DHS,” Leidos Intelligence Group President Roy Stevens said in a statement. “By supporting cross-agency intelligence sharing and secure collaboration for federal and civilian agencies, we’ll help DHS accomplish their mission of safeguarding the homeland. Our team will be focused on delivering capabilities like quantum resistant cryptography, artificial intelligence operations, robotic process automation and classified cloud service integration.”

General Dynamics, HII subsidiaries receive $14.58B in Navy contracts

Reston-based General Dynamics’ Bath Iron Works subsidiary and Newport News-based Huntington Ingalls Industries’ Ingalls Shipbuilding will construct Arleigh Burke-class guided missile destroyers for the Navy during the next 10 years under contracts valued up to $14.58 billion.

The Pentagon announced the contracts Aug. 1 but did not specify the total until Wednesday.

The fixed-price incentive multiyear contracts call for General Dynamics’ Bath Iron Works in Maine to construct three ships from fiscal 2023 through fiscal 2026; Huntington Ingalls’ Mississippi-based Ingalls Shipbuilding will build seven ships: two apiece in fiscal 2023 and fiscal 2025, and one ship apiece in fiscal years 2024, 2026 and 2027.

The contracts include options for engineering change proposals, design budgeting requirements, post-delivery availability and options for construction of additional ships.

Dominion announces $14B sale of three natural gas companies

Richmond-based Fortune 500 utility Dominion Energy is selling its three natural gas distribution companies to Canadian pipeline and energy company Enbridge Inc. in a $14 billion deal announced Tuesday afternoon. Enbridge on Tuesday announced that the sale creates the largest natural gas utility franchise in North America.

The companies, the East Ohio Gas Co., Public Service Co. of North Carolina and Utah-based Questar Gas Co., along with its sister company, Wexpro Co., serve about 3 million homes and businesses in Ohio, North Carolina, Utah, Wyoming and Idaho and account for about 78,000 miles of natural gas distribution, transmission, gathering and storage pipelines.

The deal, which is subject to multiple regulatory approvals, is expected to be complete by the end of 2024. The sale includes a purchase price of $9.4 billion plus the assumption of debt.

Dominion Energy shares closed at $46.78 and rose to $48.29 in after-hours trading shortly after the sale was announced and dropped to $45.94 by 5:20 p.m.

As part of the sale, Enbridge agreed to “provide significant protections for existing employees, honor existing union commitments and maintain local operating leadership,” Bob Blue, Dominion Energy’s chair, president and CEO, said in a statement. About 3,600 employees are affected by the sale, Dominion spokesperson C. Ryan Frazier told Virginia Business via email.

“Today’s announcement further highlights Dominion Energy’s premier state-regulated, electric utilities that operate in some of the most attractive regions in the country,” Blue said in a statement. “Data center expansion, bolstered by artificial intelligence, along with electrification and general economic activity are driving the most significant demand growth in our company’s history and shows no signs of abating.  This unrivaled demand growth will drive very significant regulated capital investment to ensure reliable energy for our nearly 3.5 million electric utility customers.”

Blue added that the transactions provide Dominion, which is developing a 2.6-gigawatt, $9.8 billion wind farm 27 miles off the Virginia Beach coast and a massive solar project at Washington Dulles International Airport in Northern Virginia, with a “significant step” in its business review, ” which is focused on repositioning the company to create maximum long-term value for shareholders, employees, customers and other stakeholders,” in addition to strengthening the company’s credit position.

The announcement follows news that Dominion completed the sale of its stake in the Cove Point natural gas liquefaction facility in Maryland to Berkshire Hathaway Energy for $3.5 billion on Sept. 1.

Richmond-based McGuireWoods served as legal counsel to Dominion Energy. Citi and Goldman Sachs were co-financial advisors for the transaction.