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byline: Rich Griset

Northrop Grumman lands potential $4.8B Air Force drone modernization

Northrop Grumman Corp. has received a potential $4.8 billion contract to update, refurbish and sustain the U.S. Air Force’s fleet of RQ-4 Global Hawk unmanned aerial systems.

The indefinite-delivery/indefinite-quantity contract for the Falls Church-based company includes task orders for specific UAS modernization services in line with the Air Force’s Global Hawk program, the Department of Defense announced Monday.

Contract work in support of the UAS and its variants cover various activities including program management, engineering, analysis, overseas contingency operations support, fielding assistance, logistics services, facilities modification, quality assurance and requirements specification management.

The Air Force Life Cycle Management Center will obligate multiple fiscal-year appropriations for the sole-sourced award. Northrop will perform work under the IDIQ contract in San Diego through Sept. 30, 2030. Since 2001, the Air Force has deployed Global Hawk to support long-distance operations such as intelligence gathering, emergency response, search-and-rescue and weather forecasting.

 

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McLean-based technical consulting firm names VP of DOJ business sector

Latarshia Crawford-Jones has been appointed vice president of Department of Justice business at Steampunk, a McLean-based technical consulting firm.

Crawford-Jones’ career spans more than two decades in the public and private sectors, including service in the U.S. Navy, the FBI, Science Applications International Corp., Northrop Grumman Corp. and Information Innovators Inc.

Crawford-Jones established and led Springfield-based data management services provider Twenty39. She also held an IT project manager position at the DOJ from 2012 to 2016 and has served as a board member at Baltimore-based investment group Citrine Angels since September 2019.

She holds a bachelor’s degree in information technology systems from American InterContinental University and an MBA from New York Institute of Technology.

 

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The Branch Group names new CEO

The Branch Group Inc. announced Monday that Donald “Don” Graul will take over as CEO of the Roanoke-based construction company on Dec. 14.

With 38 years of industry experience, Graul most recently served as president of construction and connected communities for Centreville-based Parsons Corp. Graul held several roles at Parsons, including executive vice president of construction, responsible for coordinating construction across all Parsons business units.

He replaces former CEO Will Karbach, who resigned abruptly in July without a public explanation. Branch Group’s chairman of the board, Ron Oakley, has served as interim CEO.

In addition to his contributions at Parsons, Graul was senior vice president at Los Angeles-based AECOM where he was responsible for directing the transportation, water, and energy business lines’ (civil infrastructure), business development and operational activities in the alternative delivery market. His career also includes leadership roles with Modern Continental Construction, URS Corp. and Fluor Corp.

Graul holds a bachelor’s degree in civil engineering from the University of Nebraska and completed the Senior Executive Programme at London Business School. He is a registered professional engineer in several states.

In addition to his responsibilities at Parsons, Graul was recently inducted into the National Academy of Construction, sits on the board of the American Road & Transportation Builders Association, and is an active member of the American Society of Civil Engineers, the Associated General Contractors of America and the Design-Build Institute of America.

With about $500 million in 2019 revenues and more than 900 employees, The Branch Group is the fifth-largest general contracting company in Virginia.

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Long-delayed Genworth acquisition postponed again

Henrico-based Genworth Financial Inc. and China-based Oceanwide Holdings Group Co. Ltd. announced on Monday that Oceanside’s long-delayed $2.7 billion acquisition of Genworth has been reapproved by China’s National Development and Reform Commission, and the acquisition has been postponed until the end of December.

With the Chinese government’s reapproval, Oceanwide will now move forward on the few remaining regulatory steps required to close its $2.7 billion acquisition of Genworth. Among those steps are seeking clearance for currency conversion, the transfer of the balance of the transaction funds from China’s State Administration of Foreign Exchange and obtaining confirmation from the Delaware Department of Insurance that the acquisition of Genworth’s Delaware-domiciled insurer may proceed under the existing approval.

To allow additional time for Oceanwide to complete these final steps, the parties are working on extending each party’s right to terminate their merger agreement until Dec. 31, 2020. The parties are also working on a 90-day extension of each of the three $500 million tranches under the post-close Oceanwide capital plan.

“We are encouraged that Oceanwide continues to make progress on the remaining steps needed to complete the transaction,” said Genworth President and CEO Tom McInerney in a statement.  “Although I am disappointed we could not close by Nov. 30, we are hopeful that we can close in the first half of December, but have agreed to an end date of Dec. 31, 2020 to allow more time for the remaining regulatory approvals to be achieved.”

Oceanwide’s acquisition of the Fortune 500 insurance company has been subjected to numerous delays since the companies announced they had entered an agreement on Oct. 23, 2016. In June, the Virginia State Corporation Commission’s Bureau of Insurance reapproved the merger, and the companies agreed to a 15th waiver and agreement to each party’s right to terminate the proposed agreement.

On Oct. 1, 2020, Genworth announced that Oceanwide had reached an agreement with Chinese private equity firm Hony Capital on the commercial terms and conditions of its $1.8 billion offshore financing plan to complete its acquisition of Genworth. On that same date, the companies agreed to a 16th waiver and agreement of each party’s right to terminate their previously announced merger agreement. It extended the previous deadline of Sept. 30 to no later than Nov. 30. Oceanwide, however, had not reached a final agreement on all terms and conditions due to pandemic-related challenges including travel restrictions and mandatory quarantine requirements.

Last December, Genworth completed the sale of the majority stake in its Canadian mortgage insurance company, which was required by Canadian regulators before Oceanwide could acquire Genworth. In March, the New York State Department of Financial Services reapproved Oceanwide’s proposed acquisition of Genworth’s New York-based insurance company, Genworth Life Insurance Co. of New York.

 

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Remembering John G. Stallings Jr.: 1967-2020

The word “can’t” just didn’t seem to be a part of John G. Stallings Jr.’s vocabulary.

From helping reshape what is now Atlantic Union Bank from a small community bank into a regional player to starting a youth financial literacy program to serving on the boards of multiple organizations, Stallings’ friends and colleagues describe him as a compassionate, charismatic and selfless leader who devoted much of his time to helping others. He died at home on Nov. 2 following a three-year fight with bile duct cancer. He was 53.

After serving as president and CEO for SunTrust Banks’ Virginia operations, Stallings became president of Union Bank & Trust — now Atlantic Union — in September 2017. In that role, John Asbury, CEO of Atlantic Union Bank and of Atlantic Union Bankshares Corp., says Stallings had an “extraordinary impact on the company” during his short tenure, which ended after about a year and a half due to his cancer diagnosis.

“I used to refer to him as Mary Poppins: practically perfect in every way,” says Asbury. “John was a catalyst in [just] about anything that he did.”

That impact was felt by multiple community and philanthropic organizations, including the Virginia Bankers Association, for which Stallings served as board chairman from 2016 to 2017.

“He was just the epitome of a community leader, a community servant, and he was a really great person,” says Bruce Whitehurst, president and CEO of the Virginia Bankers Association. “He was such an inspiration to everyone who knew him.”

He was also annual fund chairman for the YMCA of Greater Richmond, an executive committee board member of Venture Richmond, and a member of the boards of the Virginia Foundation for Independent Colleges, Collegiate School, Virginia Chamber of Commerce and the Science Museum of Virginia Foundation.

In 2018, the Virginia Center for Inclusive Communities presented him with its Humanitarian Award. Stallings was also featured as a Living Legend in the first edition of Virginia Business magazine’s Virginia 500 issue. Tim Joyce, president and CEO of the YMCA of Greater Richmond, says Stallings was “genuine and compassionate and loving of people.”

“He loved this community, he loved his family, he loved the YMCA, he loved the Lord, and he was this amazing leader,” Joyce says. “He walked what he talked.”

 

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New community bank set to open in Va. Beach

For all Mike Ives’ experience in banking, he was perplexed by a word that potential investors and clients kept mentioning during a feasibility study for the bank he wanted to form: “menu.”

“I’d not heard the word ‘menu’ used before regarding banking,” says Ives, explaining that some larger banks give their clients a prearranged menu of financial options instead of forging a personalized relationship.

“I thought it was very apropos for the difference between larger [banks] and a small community bank.”

With his focus set squarely on serving small business owners and professional firms in southern Hampton Roads, Ives plans to open Integrity Bank for Business in April. Ives says Integrity has a niche to scratch.

“We think there’s tremendous opportunity,” says Ives, the bank’s president and CEO. “There’s no true small community bank existing right now in Norfolk, Virginia Beach and Chesapeake.”

The formation of Integrity, in a sense, has been an exercise in getting the band back together. With more than three decades of bank leadership experience, Ives previously served as president and CEO of Heritage Bank, the last new Hampton Roads-headquartered bank, which focused on business customers before it merged with Southern Bank in 2016. Two Integrity senior staffers and six Integrity board members served in similar roles at Heritage.

Steve Yeakel, president and CEO of the Virginia Association of Community Banks, says that Heritage had a unique business plan and “great people.”

“I am sure they would have every chance of success,” he says of Integrity. “They were a good team at Heritage.”

Startup — or “de novo” — banks have been a rarity since the 2010 Dodd-Frank Act more than doubled regulations and increased the amount of capital required to open a bank. After regulations were relaxed in 2018, de novo activity began to pick up, including the establishment of Fairfax County-based Trustar Bank in 2019.

Integrity plans to raise minimal capital of $20 million, with a maximum of $23 million from a common stock offering. As of early November, Integrity had raised $1.4 million in seed money with support from Hampton Roads business leaders, including several members of the Nusbaum family of Norfolk-based S.L. Nusbaum Realty Co. With an initial branch office and headquarters planned for the Lynnhaven area of Virginia Beach, Ives aims to deliver a personalized touch for customers.

“The market’s dominated by very large banks and very large community banks,” he says. “There’s currently a void in Hampton Roads.”

 

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Appalachian Power denied rate increase by SCC

A rate increase sought by Appalachian Power Co. has been denied by the State Corporation Commission.

According to a statement issued by the SCC on Tuesday, Appalachian Power was seeking to increase rates by approximately $10 per month for a typical residential customer using 1,000 kilowatt hours of electricity. Appalachian Power earned profits that were within the range authorized by Virginia utility law for calendar years 2017, 2018 and 2019, determined by the SCC’s triennial financial review of the utility, through which it was seeking a rate increase.

The company will not receive a rate increase, and customers are not due refunds.

The company’s authorized rate of return on equity during the three-year review period was 9.42%. After reviewing the reasonableness of the company’s expenses and revenues during the period, the SCC determined the company earned slightly above that level. The commissioner also set a new authorized rate of return on equity of 9.2%, the rate that will be used to evaluate the company’s earnings during the next triennial financial review case in 2023. It will also be the return used for any new rate riders or adjustments to existing riders.

The SCC also made the following determinations:

  • Denial of the company’s request to apply the 2015 planned retirements of three coal-fired power plants to 2019 earnings
  • Denial of a request to increase the residential basic service charge from $7.96 to $14
  • Denial of implementation of a residential rate design that would have charged higher rates during summer months and lower rates during the winter.
  • The company will continue charging the same residential rate year-round.
  • Approval of voluntary energy efficiency rate schedules to provide residential customers with pricing signals that shift consumption to hours when demand and prices are lower

Appalachian Power serves about 1 million customers in Virginia, West Virginia and Tennessee. Its Virginia service area includes Southwest Virginia and the Roanoke and New River Valley regions.

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Shenandoah Valley Organic to create 110 jobs in Harrisonburg

Shenandoah Valley Organic, a family-owned organic chicken company, will establish a second, 75,000-square-foot facility in Harrisonburg, increasing production capacity and retail packaging abilities. The expansion will create 110 jobs, Gov. Ralph Northam announced Tuesday.

Founded by sixth-generation farmer Corwin Heatwole, Shenandoah Valley Organic mission is to partner with independent family farmers to raise organic chickens. Headquartered in Harrisonburg, all of the family-owned company’s products are sourced from nearly 70 family farms. Virginia competed with West Virginia for the expansion.

“We chose Harrisonburg to expand because this community and city is a big part of our success to date,” says Corwin Heatwole, CEO of Shenandoah Valley Organic. “Our production team and our farmers live here and come with tremendous experience in the poultry industry. We are fortunate to live in the beautiful valley, but are close to large East Coast markets where organic poultry demand is high.”

The Virginia Economic Development Partnership worked with the City of Harrisonburg, the Virginia Department of Agriculture and Consumer Services, and the Shenandoah Valley Partnership to secure the project for Virginia. Gov. Ralph Northam approved a performance-based grant of $800,000 from the Virginia Investment Performance program, an incentive that encourages capital investment by existing Virginia companies.

“Shenandoah Valley Organic is a homegrown Virginia company that has thrived in Harrisonburg since its founding in 2014,” Northam said in a statement. “As a leading agricultural region, the Shenandoah Valley is a natural fit for a business like SVO that partners with family farms, which remain the backbone of the local economy. This significant expansion speaks forcefully about the commonwealth’s strong infrastructure, dedicated workforce and bright economic future.”

Northam also approved a $500,000 grant from the Commonwealth’s Opportunity Fund and a $500,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, which supports projects sourcing Virginia-grown products, to assist the City of Harrisonburg with the project. The company is eligible to receive benefits from the Major Business Facility Job Tax Credit for new, full-time jobs created. Funding and services to support Shenandoah Valley Organic’s employee training activities will be provided through the Virginia Jobs Investment Program.

“Since establishing its manufacturing operation in the city of Harrisonburg, Shenandoah Valley Organic has become a valued partner and employer in the commonwealth,” Secretary of Commerce and Trade Brian Ball said in a statement. “Food and beverage processing are the heart of the Shenandoah Valley’s manufacturing sector and the region offers a ready-to-work talent pool in the industry. We thank SVO for reinvesting in Virginia, and we look forward to its next chapter of growth.”

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Northam announces ‘Dopesick’ to film in Virginia

On Tuesday, Gov. Ralph Northam announced that “Dopesick,” an eight-episode limited Hulu series, will film in Central Virginia, the Shenandoah Valley and Roanoke region through the spring.

Based on the bestselling nonfiction book “Dopesick: Dealers, Doctors, and the Drug Company that Addicted America,” by Roanoke journalist Beth Macy, the series will star Academy Award-nominated actor Michael Keaton, Peter Sarsgaard, Rosario Dawson and Kaitlyn Dever. It will be directed by Academy Award winner Barry Levinson.

In a release, the governor’s office calls “Dopesick,” “a revealing look into the epicenter of America’s struggle with opioid addiction … while shining a hopeful light on the heroes battling an unprecedented drug epidemic.” The series will film this winter and is anticipated to continue through the spring.

“Virginia continues to be a premier production hub for filmmakers seeking an authentic, film-friendly environment and a home away from home,” says Northam. “It is wonderful to see this story from a Virginia author transformed from page to screen right here in our commonwealth. We are honored to host the impressive team behind this compelling and consequential project, and to play a role in putting a universal spotlight on the opioid epidemic that continues to devastate American families and communities from all walks of life.”

Hulu’s “Dopesick” miniseries will be eligible to receive a Virginia film tax credit or grant. The exact amount will be based on the number of Virginia workers hired, goods and services purchased, and deliverables including tourism promotions.

The Touchstone Television production will be required to adhere to comprehensive industry health and safety protocols developed over the past six months by various industry guilds and organizations. Guiding principles include strictly enforced testing regimens and safety protocols, a zone-based system, and diligent use of personal protective equipment. These safety measures are in addition to the current Virginia pandemic workplace safety guidelines and those required by Touchstone Television.

 

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Smithfield Foods commits $300K to support STEM initiative

Smithfield Foods Inc. has announced it plans to commit $300,000 through 2021 to support Heritage STEM Camps Foundation, a not-for-profit organization that creates immersive experiences for aspiring leaders in the fields of science, technology, engineering and math.

The Smithfield-based company’s contribution will support Heritage’s mid-Atlantic efforts to boost levels of self-confidence and self-efficacy among minority young women and prepare them to be leaders in STEM fields, as well as business and entrepreneurship.

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